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The ROI of social media Meteor Webinar – 10/29/2009 10/29/2009 www.meteorsolutions.com 1
Introduction Ben Straley, Meteor Solutions CEO Leading Technology Platform for Tracking and Activating Earned Media Brands Using Meteor Include: 10/29/2009 www.meteorsolutions.com 2
Online Advertising Is Changing… 10/29/2009 CONFIDENTIAL www.meteorsolutions.com 3 Build Site and Create Content Buy Ads SEO and Paid Search Tracking and Optimization Tracking and Optimization
Today Marketing Success Is Earned Paid Media (Ads) Owned Media Earned Media
The Bigger Picture 10/29/2009 www.meteorsolutions.com 5 Source:  Meteor Solutions data from >15 sites spanning games, mobile, technology, and travel sites.
Does It “Move the Needle”? 10/29/2009 www.meteorsolutions.com 6 + + Valuable Visitors ,[object Object]
Loyal Fans(source:  Meteor Solutions, Razorfish) Growth Potential ,[object Object]
Facebook is Top Referral Source to  PerezHilton.com (source:  hitwise.com)Lots of Traffic ,[object Object],(source:  Meteor Solutions)
So How Do I Measure Its Value and ROI? 10/29/2009 www.meteorsolutions.com 7
Recommendation #1 Be Clear About Your Objectives and Set Expectations Accordingly 10/29/2009 www.meteorsolutions.com @meteorsolutions 8
Awareness = Sheep + LEDs Brand/Product Page Video 10/29/2009 www.meteorsolutions.com 9
See?  It Works! > 8MM Video Views (6MM in First 2 Weeks) > 3K Tweets About Video on Twitter Blog Mentions Search Volume Video Posted to You Tube (3/16/2009)
Or Does It? Video Posted to YouTube
Recommendation #2 Track and Measure What You Can.  There Are Free Tools That Make It Simple and Easy to Quantify Impact and ROI. 10/29/2009 www.meteorsolutions.com @meteorsolutions 12
Quantifying Impact Using Twitter and Bit.ly 10/29/2009 www.meteorsolutions.com 13 http://www.ted.com/talks/clay_shirky_how_cellphones_twitter_facebook_can_make_history.html
Twitter Activity 10/29/2009 www.meteorsolutions.com 14 Useful, relative measure of content “reach”
Bit.ly Click Trends 10/29/2009 www.meteorsolutions.com 15
@meteorsolutions Stats Avg. Clicks per Tweet:  						13 Number of Followers:							184 Click-Through Rate:								7.1% Avg. Total Clicks per Tweet (bit.ly):		2,698 Avg. % of Total Clicks per Tweet (bit.ly):   .6% 10/29/2009 www.meteorsolutions.com 16
Click-Through Rate = Effectiveness 10/29/2009 www.meteorsolutions.com @meteorsolutions 17 ,[object Object],My Click-Through Rate = (My Clicks) / (My Followers)
Click-Share = Influence 10/29/2009 www.meteorsolutions.com @meteorsolutions 18 ,[object Object],Twitter Click-Share = (My Clicks) / (Total Clicks)
Recommendation #3 Go Beyond Listening, Counting Mentions, and Tracking “First Clicks”.  Capture the Full Scope of Your Program’s Impact. 10/29/2009 www.meteorsolutions.com @meteorsolutions 19
Case Study:  The Multiplier Effect 10/29/2009 Proprietary and Confidential. Patents Pending.  GOAL:  ,[object Object],STRATEGY AND PLAN: ,[object Object],TACTICS: ,[object Object]
Video series encourages repeat visits and WOM
Community “unlock” of video content fuels sharing.,[object Object]
Direct Referrals to Site 10/29/2009 Proprietary and Confidential. Patents Pending.  The common view of sources of traffic…
“Earned” Referrals to Site
37% That’s the % of Unique Visitors That Came from  Earned Referrals Over The Life of This Campaign. And… We’re Seeing Some Sites Drive The Majority of Their Traffic This Way 10/29/2009 www.meteorsolutions.com 24
But Wait, There’s More! Remember this statistic? “Visits from Shared Links Can Convert Up to 4X More Than Paid Media” (Razorfish) 10/29/2009 www.meteorsolutions.com 25
A Few Basic Calcs Traffic Value Value of Visit:									         $2.50 Number of Direct Visits:				   		       10,000 Value of Direct Visits:         		 $2.50 * 10,000 = $25,000 New Customer Value Value of Conversion:		    				             $50.00 Number of Direct Conversions:					   1,000 Value of Direct Conversions:	 $50.00 * 1,000 = $50,000  10/29/2009 www.meteorsolutions.com @meteorsolutions 26
Paid + Earned Media ROI Model Traffic Value Value of Visit:									              $2.50 Number of Direct Visits:				   		                   10,000 Value of Direct Visits:         		        $2.50 * 10,000 = $25,000 Number of Earned Visits:				    			      2,000 Value of Earned Visits:	            $2.50 * 2,000 = $5,000 Customer Value Value of Conversion:		    				                          $50.00 Number of Direct Conversions:					             1,000 Value of Direct Conversions:	 		$50.00 * 1,000 = $50,000 Number of Earned Conv.:                     200 Value of Earned Conv.:                   $50.00 * 200 = $10,000  10/29/2009 www.meteorsolutions.com @meteorsolutions 27
Earned Media ROI Earned Media ROI (Visits) 2,000 * $2.50 / 10,000 * $2.50 = 20% Earned Media ROI (Conversions) 200 * $50.00 / 1,000*$50.00 = 20% 10/29/2009 www.meteorsolutions.com @meteorsolutions 28
Tracking Earned Media ROI by Tactic/Channel 10/29/2009 www.meteorsolutions.com @meteorsolutions 29

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The ROI of earned social media

  • 1. The ROI of social media Meteor Webinar – 10/29/2009 10/29/2009 www.meteorsolutions.com 1
  • 2. Introduction Ben Straley, Meteor Solutions CEO Leading Technology Platform for Tracking and Activating Earned Media Brands Using Meteor Include: 10/29/2009 www.meteorsolutions.com 2
  • 3. Online Advertising Is Changing… 10/29/2009 CONFIDENTIAL www.meteorsolutions.com 3 Build Site and Create Content Buy Ads SEO and Paid Search Tracking and Optimization Tracking and Optimization
  • 4. Today Marketing Success Is Earned Paid Media (Ads) Owned Media Earned Media
  • 5. The Bigger Picture 10/29/2009 www.meteorsolutions.com 5 Source: Meteor Solutions data from >15 sites spanning games, mobile, technology, and travel sites.
  • 6.
  • 7.
  • 8.
  • 9. So How Do I Measure Its Value and ROI? 10/29/2009 www.meteorsolutions.com 7
  • 10. Recommendation #1 Be Clear About Your Objectives and Set Expectations Accordingly 10/29/2009 www.meteorsolutions.com @meteorsolutions 8
  • 11. Awareness = Sheep + LEDs Brand/Product Page Video 10/29/2009 www.meteorsolutions.com 9
  • 12. See? It Works! > 8MM Video Views (6MM in First 2 Weeks) > 3K Tweets About Video on Twitter Blog Mentions Search Volume Video Posted to You Tube (3/16/2009)
  • 13. Or Does It? Video Posted to YouTube
  • 14. Recommendation #2 Track and Measure What You Can. There Are Free Tools That Make It Simple and Easy to Quantify Impact and ROI. 10/29/2009 www.meteorsolutions.com @meteorsolutions 12
  • 15. Quantifying Impact Using Twitter and Bit.ly 10/29/2009 www.meteorsolutions.com 13 http://www.ted.com/talks/clay_shirky_how_cellphones_twitter_facebook_can_make_history.html
  • 16. Twitter Activity 10/29/2009 www.meteorsolutions.com 14 Useful, relative measure of content “reach”
  • 17. Bit.ly Click Trends 10/29/2009 www.meteorsolutions.com 15
  • 18. @meteorsolutions Stats Avg. Clicks per Tweet: 13 Number of Followers: 184 Click-Through Rate: 7.1% Avg. Total Clicks per Tweet (bit.ly): 2,698 Avg. % of Total Clicks per Tweet (bit.ly): .6% 10/29/2009 www.meteorsolutions.com 16
  • 19.
  • 20.
  • 21. Recommendation #3 Go Beyond Listening, Counting Mentions, and Tracking “First Clicks”. Capture the Full Scope of Your Program’s Impact. 10/29/2009 www.meteorsolutions.com @meteorsolutions 19
  • 22.
  • 23. Video series encourages repeat visits and WOM
  • 24.
  • 25. Direct Referrals to Site 10/29/2009 Proprietary and Confidential. Patents Pending. The common view of sources of traffic…
  • 27. 37% That’s the % of Unique Visitors That Came from Earned Referrals Over The Life of This Campaign. And… We’re Seeing Some Sites Drive The Majority of Their Traffic This Way 10/29/2009 www.meteorsolutions.com 24
  • 28. But Wait, There’s More! Remember this statistic? “Visits from Shared Links Can Convert Up to 4X More Than Paid Media” (Razorfish) 10/29/2009 www.meteorsolutions.com 25
  • 29. A Few Basic Calcs Traffic Value Value of Visit: $2.50 Number of Direct Visits: 10,000 Value of Direct Visits: $2.50 * 10,000 = $25,000 New Customer Value Value of Conversion: $50.00 Number of Direct Conversions: 1,000 Value of Direct Conversions: $50.00 * 1,000 = $50,000 10/29/2009 www.meteorsolutions.com @meteorsolutions 26
  • 30. Paid + Earned Media ROI Model Traffic Value Value of Visit: $2.50 Number of Direct Visits: 10,000 Value of Direct Visits: $2.50 * 10,000 = $25,000 Number of Earned Visits: 2,000 Value of Earned Visits: $2.50 * 2,000 = $5,000 Customer Value Value of Conversion: $50.00 Number of Direct Conversions: 1,000 Value of Direct Conversions: $50.00 * 1,000 = $50,000 Number of Earned Conv.: 200 Value of Earned Conv.: $50.00 * 200 = $10,000 10/29/2009 www.meteorsolutions.com @meteorsolutions 27
  • 31. Earned Media ROI Earned Media ROI (Visits) 2,000 * $2.50 / 10,000 * $2.50 = 20% Earned Media ROI (Conversions) 200 * $50.00 / 1,000*$50.00 = 20% 10/29/2009 www.meteorsolutions.com @meteorsolutions 28
  • 32. Tracking Earned Media ROI by Tactic/Channel 10/29/2009 www.meteorsolutions.com @meteorsolutions 29
  • 33. Take-Aways Earned Media is a Key Determinant of Campaign Success Tracking and Measurement Can Be Simple and Inexpensive Measurement Leads to Optimization of Campaign Performance 10/29/2009 www.meteorsolutions.com 30
  • 34. November Webinar “Campaign Activation - How to Attract an Audience and Drive Engagement” Best Practices Tips and Tricks Optimization Methods Case Studies Wednesday, November 19th, 11AM PST 10/29/2009 www.meteorsolutions.com @meteorsolutions 31
  • 35. How To Reach Me Website: www.MeteorSolutions.com Blog: blog.meteorsolutions.com Twitter: @MeteorSolutions Ben Straley, CEO Ben@meteorsolutions.com 206.859.3563 (866) 677-0604 10/29/2009 www.meteorsolutions.com 32