The webinar discussed how CMOs are monetizing social media marketing and measuring ROI. It began with an introduction and overview of the agenda. It then covered how CMO priorities for social media are shifting to a focus on monetization and ROI. Common methods for calculating the ROI of social media marketing were presented, including identifying relevant metrics and costs. The webinar also introduced a "ROAD map" methodology for developing a strategic social media marketing plan with objectives, tactics, platforms, and architecture. Finally, Vocus provided 5 tips for social media success focusing on audiences, influencers, sentiment, traditional media, and measurement.

1. How CMOs are Monetizing Social
Marketing and Measuring ROI
Sponsored by:

2. Introductions
Justin Bridegan, Senior Marketing Manager
MarketingSherpa / MECLABS Primary Research
@JustinBridegan
Sergio Balegno, Director of Research
MarketingSherpa / MECLABS Primary Research
@SergioBalegno
Kye Strance, Director of Product Marketing
Vocus
@KyeStrance
Sponsored by:
#SherpaWebinar

3. Join the conversation on Twitter
#SherpaWebinar
Sponsored by:
#SherpaWebinar

4. Today’s webinar agenda
• MarketingSherpa
• Setting the stage for social media marketing monetization
• How CMO priorities for social marketing are changing
• What's driving the investment in social media programs
• How CMOs are calculating social marketing return on investment
• The first step to monetizing the social media channel
• Vocus
• 5 Tips for Social Marketing Success
Sponsored by:
#SherpaWebinar

5. Annual research cycle improves marketing know-how
• Publish research on what is working
(and what isn’t) for marketers today
• Benchmark Reports, Case Studies
• Identify best practices and formulate
practical methodologies
• Handbooks, Special Reports
• Teach marketers how to apply best
practices and methodologies
• Summits, certification training, webinars
• This cycle is focused on strategies and
practices for social media monetization
Sponsored by:
#SherpaWebinar

6. The importance of social marketing maturity
Three Phases of Social Marketing Maturity
Trial Phase Transition Phase Strategic Phase
Organization does not have a Organization has an informal Organization has a formal process
process or guidelines for process with a few guidelines it with thorough guidelines it
performing social marketing. sporadically performs. routinely performs.
Poll #1 – Which statement best describes the process your
organization uses to plan, execute and measure the
performance of social media marketing programs?
Sponsored by:
#SherpaWebinar

7. The importance of social marketing maturity
• Chart: 46% of CMOs in transition
from the trial to the strategic
phase
• Social marketing requires
investment in human and other
resources
• Strategic process needed to
monetize social media channel
and prove ROI
Sponsored by:
#SherpaWebinar

8. CMO priorities and perceptions driving ROI

9. Priorities for social media are changing –
Now it’s “show me the money"
• Social channel monetization factors
are top-of-mind priorities for CMOs
• Goal of social channel monetization:
Measureable return on investment
• Strategic phase organizations are 80%
more likely than Trial to prioritize ROI
• Why? Trial phase organizations don’t
have a process for performing social
marketing or measuring ROI
Sponsored by:
#SherpaWebinar

10. Perceptions driving social marketing investment
• If social marketing perceived to
produce ROI, investment follows
• Strategic phase 4X as likely as
Trial to produce measureable ROI
• Why? No process, no proof of
ROI, no investment
• Think social marketing is free?
You’re destined to get what you
pay for!
Sponsored by:
#SherpaWebinar

11. The promise of social marketing ROI a reality
• When ROI equals a positive %,
earning more than costing
• Average social marketing ROI 95%
• One-in-four CMOs are doubling
their social investment (100% ROI)
• Overcoming the myth that social
marketing ROI isn’t measureable
Sponsored by:
#SherpaWebinar

12. Calculating the ROI of social media marketing

13. ROI is a measure of financial value returned on
every dollar invested
• Formula: Return on investment =
(Value gained from investment – Cost of investment) / Cost of investment
• Tracking the right metrics for determining the values and costs of social
media marketing can be a challenge
• “Around 10% of our social media activity directly translates to bottom-line
results, making ROI easy to determine for that portion. However, 90% of the
work has to do with people building their reputation online and helping
others, so they can effectively promote the brand online. That big chunk of
work is impossible to measure in terms of ROI.” –CMO insight
Sponsored by:
#SherpaWebinar

14. When it comes to calculating social media ROI,
some metrics matter more than others
• Qualitative, non-financial metrics CAN be measured
• Quantitative, financial metrics SHOULD be measured
• Financial values are metrics that matter most for calculating and proving ROI
• Return on engagement, return on innovation, etc. mean nothing in the C-suite
Sponsored by:
#SherpaWebinar

15. Values CMOs can use to calculate the Return
• Many values can be measured
• Estimated value of quantitative
social media metrics
• Likes/Fans
• Followers
• Estimated value of qualitative social
media metrics
• Sentiment
• Awareness/Voice
• These metrics useful to monitor
audience but not to measure ROI
Sponsored by:
#SherpaWebinar

16. Values CMOs should use to calculate Return
• Actual sales on ecommerce sites can be tracked to social media engagement
• Most organizations know the estimated value of a qualified lead – use it!
• There are two ways to gain value – increasing income and reducing costs
• Not factoring social media’s ability to reduce customer support costs is a missed opportunity
• Which values can and should you use to calculate social marketing ROI?
Sponsored by:
#SherpaWebinar

17. Costs CMOs are using to calculate Investment
• Investment side of ROI equals costs
associated with social marketing
• Social falls into two main media
categories – earned and paid
• Earned media time intensive tactic
requiring more human resources
• Paid media cash intensive tactic
requiring fewer human resources
Sponsored by:
#SherpaWebinar

18. Formula for calculating the ROI of social marketing
(Value gained from investment – Cost of investment) / Cost of investment = ROI
Value Gained ROI analysis: Social lead gen campaign
Minus Cost
•
• Value: 500 qualified leads tracked to
social at est value $150/lead = $75k
Divided
Cost: Staff plus other expense = $15k
by Cost •
Equals
($75k - $15k) / $15k = 400% ROI
ROI
•
Sponsored by:
#SherpaWebinar

19. Monetizing social media requires strategic thinking

20. The social marketing ROAD Map
A method for mapping a social marketing strategy
20
Sponsored by:
#SherpaWebinar

21. Research: Gathering intelligence on target audiences
and their social media behavior
• Research is the first step in the ROAD
Map methodology
• Monitoring helps identify and profile
target audiences (vs. calculate ROI)
• Monitor characteristics and behaviors
specific to social media
21
Sponsored by:
#SherpaWebinar

22. Stop, look and listen –
What to monitor on social media
Related search phrases Social media factors
• Social voice (or strength)
• Industry sectors
• Sentiment
• Technologies
• Passion
• Companies
• Unique authors
• Brands
• Social reach
• Products
• Content downloads
• Services
• Content sharing
• Key issues
• Reviews and recommendations
• Industry experts
• Platform preferences
• Key employees
• Audience segments
22
Sponsored by:
#SherpaWebinar

23. Social monitoring tools and solutions
% using solutions by type Monitoring target audiences
Sponsored by:
#SherpaWebinar

24. Segmenting by social behavior and influence –
Keep it simple
• Silent Majority
• Joins but rarely participates
• Reads, watches, listens to UGC
• Few friends, contacts, followers
• Low level of social influence
• Vocal Minority
• Joins and actively participates
• Shares UGC and commentary
• Many friends, contacts, followers
• Moderately high level of social influence
• Social Authority
• Builds and moderates communities
• Creates and aggregates UGC
• Very many friends, contacts, followers
• Very high level of social influence
24
Sponsored by:
#SherpaWebinar

25. Profiling your target audiences
25
Sponsored by:
#SherpaWebinar

26. Objectives: Defining objectives aligned with
target audiences
Target Audience Segment Social Marketing Objectives
Email marketers in the • Increase ‘Likes’ on Facebook brand page by…
Vocal Minority • Increase website traffic from Facebook by…
• Reduce costs to support this customer segment by…
Email agencies/consultancies • Increase Social Authority target list by…
in the Social Authority • Increase Twitter thought-leader page retweets by…
• Increase link-backs from Social Authority blogs by…
Sponsored by:
#SherpaWebinar

27. Actions: Creating an ‘effective’ social marketing
tactical plan of action
 Effective vs. ‘fast and easy’
 Blogger relations effective
but difficult – less use
• Use to target Social Authority
 Social sharing less effective
but less difficult – more use
 Focus on effective tactics,
not ‘fast and easy’
 Top tactics: Engaging the
vocal minority and pitching
the social authority
27
Sponsored by:
#SherpaWebinar

28. Tactics for engaging the Vocal Minority
and pitching the Social Authority
Engaging the Vocal Minority Pitching the Social Authority
 Vocal Minority extremely active –  Social Authority is the whale –
high level of social influence highest level of social influence
 Use one-to-many tactics  Use one-to-one tactics
 Use target audience profile to  Most blog but also microblog,
determine where they are and social network, vlog, etc.
what interests them
 Apply practices similar to press
 Join the conversation and engage relations but conform to social
the vocal minority accordingly . media culture and practices
28
Sponsored by:
#SherpaWebinar

29. Devices: Selecting social platforms by tactical
effectiveness and architectural fit
 Analyzing strengths/weaknesses of
social platforms/brands
 You may need a social network –
but which one?
• Leading brand, niche or custom
 Conduct a SWOT-like analysis to
prioritize social brands
 Select social brands that fit your
tactical plan and have a purpose
29
Sponsored by:
#SherpaWebinar

30. Without a social marketing architecture
Random acts of social marketing – no plan or purpose
30
Sponsored by:
#SherpaWebinar

31. With a social marketing architecture
Hub and spoke framework
 Hub sites for content and conversion
 Spoke sites for building communities
and relationships
 Directs traffic flow in and out of hubs
 Number of sites not important –
a plan and purpose for every site is
31
Sponsored by:
#SherpaWebinar

32. Plan and purpose for hub sites
 Websites have become hub of
overall marketing strategy
• Primary point of conversion
 Blogs have become hub of social
marketing strategy
• More dynamic, search friendly content
32
Sponsored by:
#SherpaWebinar

33. Plan and purpose for spoke sites
 Social network shares content linked
to hub sites and builds relationships
 Microblogs offer quick engagement
with links to hub site content
 Forums build technical community,
provides customer self-service and
generates product development
 Content sharing sites store content
for use on other platforms
 Spoke sites drive traffic to hub site’s
primary point of conversion
33
Sponsored by:
#SherpaWebinar

34. The social marketing ROAD Map
A method for mapping your social marketing strategy
34
Sponsored by:
#SherpaWebinar

35. 5 Tips for Social Media Success

36. Know What Your Audiences Care About
Sponsored by:
#SherpaWebinar

37. Know Who’s Talking:
The Answer May Surprise You
Sponsored by:
#SherpaWebinar

38. Keep Track of Sentiment
Sponsored by:
#SherpaWebinar

39. Don’t Forget Traditional Media
Sponsored by:
#SherpaWebinar

40. Measure
Sponsored by:
#SherpaWebinar

41. Sponsored by:
#SherpaWebinar

42. Send us your feedback – Q & A
Justin.bridegan@meclabs.com
Sergio.balegno@meclabs.com
kstrance@vocus.com
webinars@marketingsherpa.com
Sponsored by:
#SherpaWebinar