This document discusses social media marketing ROI and how to create CEO-friendly social media campaigns. It defines ROI as gains from investment minus cost of investment, divided by cost of investment. It emphasizes that increases in likes, shares, or positive sentiment alone are not financial metrics for ROI. It provides an example ROI calculation for a company blog that generated $15,000 in monthly revenue with $2,300 in monthly costs, resulting in a 552% ROI. The document outlines steps for establishing a social media activity timeline, monitoring brand mentions over time, analyzing sales data, and overlaying these metrics to look for patterns between social activities and financial impacts.

1. SOCIALMEDIA
AND
MARKETING
ROI
RULES FOR CREATING CEO FRIENDLY
SOCIAL MEDIA CAMPAIGNS
BY REX FREIBERGER

5. RETURN ON INVESTMENT
ROI = [GAIN FROM INVESTMENT – COST OF INVESTMENT] /COST OF INVESTMENT

6. RETURN ON OBJECTIVES

7. Question: What internal social strategy objectives will you
focus most on in 2011?
In the survey, Altimeter Group asked 140
corporate social strategists about their 2011
planning.

8. Question: What measurements are most important to
evaluating the success of your program?
In the survey, Altimeter Group asked 140
corporate social strategists about their 2011
planning.

9. An increase in search rankings is NOT a
financial metric
An increase in Facebook Likes is NOT a
financial metric
An increase in positive opinion is NOT a
financial metric

10. • 10 leads per month via Contact Us after
landing on the blog
• 10% of leads become clients
• 1 new client/month
• Average client value is $15,000 =
$15,000/month revenue
Website Blog
ROI ALWAYS IS:
Revenue minus
Investment/investment
15,000-2,300/2,300
ROI = 552%
• 60 hours per month to create
• Avg staff salary + benefits = $60,000
• $60,000/2000 hours = $30 per hour
• + $500 per month in design
Costs = $2,300 per month investment

11. Investment
• $20,000 for
Q2
Action
• Company
creates
Influencer
Outreach
Campaign
and
Facebook
page
Reaction
• Bloggers and
the public
respond
positively
Nonfinancial
Impact
• Q2: 20,000
people liked
page, 3x
increase in
brand
mentions,
43%
increase in
positive
sentiment
Financial
Impact
• Q2: 10,000
New
Transactions
= $100,000
WELCOME TO
ROI WORLD
$$$ $$$

12. DARE
CONNECT
WHAT IS THE UNIT OF MEASURE [THE CURRENCY IN OTHER WORDS] OF
INSPIRATION? HOW ABOUT INNOVATION? RELATIONSHIPS, EVEN?

14. CORRELATION

15. Step #1 Establish a Baseline
Trend: 10% Growth
Start of Activity
Start of Social Media Program
Start of Campaign
Start of Measurement

16. Create Facebook
Page and
Influencer
Research
Collateral and Lists
• Month 1
Reach Out to
Influencers
and do
Facebook
Advertsiting
• Month 2
Hold
Facebook
Contest and
Continue
Outreach
• Month 3
Major
Influencers
Post Review
of Product,
discuss
contest
• Month 4
Videos
posted to
Youtube,
Facebook
Contest ends
• Month 5
Step #2 Create Activity Timeline

17. Step #3 Monitor Brand Mentions

18. Use Google Insights/Trends for search data

19. Step #4 Look at Transactional Data and Sales
Sales Revenue

20. Step #5 Overlay Data onto Single Timeline

21. Step #6 Look for Patterns

22. Source: David Witt, Senior Manager, Brand Public Relations, General Mills

23. CONTACT
REXFLAY@GMAIL.COM
@REXFREIBERGER
WWW.REXFREIBERGER.COM