The document discusses the complexities of measuring social media ROI, emphasizing the importance of metrics such as brand awareness, engagement, and word-of-mouth. It critiques traditional ROI concepts and advocates for recognizing non-monetary returns like consumer relationships and engagement. Additionally, it outlines a seven-step framework for social media marketing that includes monitoring conversations, identifying influencers, and incentivizing them to promote products.

1. SOCIAL MEDIA ROI
CAN YOU MEASURE IT?

2. Some Definitions
 Measurement – A rule for assigning numbers to objects
to represent quantities of attributes.
 Metrics - A system of measures that helps to quantify
particular characteristics. In SEO the following are some
important metrics to measure: overall traffic, search
engine traffic, conversions, top traffic-driving keywords,
top conversion-driving keywords, keyword rankings, etc.
 ROI - Return on investment (ROI) is one way of
considering profits in relation to capital invested.
 ROMI - Return on marketing investment (ROMI) is the
contribution attributable to marketing (net of marketing
spending), divided by the marketing 'invested' or risked.

3. More Definitions
 Brand Awareness - Brand awareness is a marketing
concept that enables marketers to quantify levels and
trends in consumer knowledge and awareness of a
brand's existence. At the aggregate (brand) level, it refers
to the proportion of consumers who know of the brand.
 Brand Engagement - is the process of forming an
emotional or rational attachment between a person and a
brand
 WOM - It is sharing information about a product,
promotion, etc., between a consumer and a friend,
colleague, or other acquaintance.

4. Turn Your Thinking Upside Down
 Traditional ROI – company investment then
calculating returns in terms customer response
 Social Media ROI should focus on customers’
investments as they engage with the marketers
brands.
 So think not only short term responses like
increasing sales, decreasing costs but long term
returns also.

5. Turn Your Thinking Upside Down
 Company launches a blog- $$$$$$$$
 Company expects increase in sales – $$$$$$$$
 What is missing is none monetary returns
 Maybe blog satisfies brand engagement
 Not always be measured in dollars, but also in
customer behaviors (consumer investments)
 Not only reach and frequency (traffic, visitors, likes)
 But also time spent, comments, share –wom
 Developing meaningful relationships with customers
takes time

6. What to do and What not to do
 Drivers of Consumers use of social media
 Connections
 Creation
 Consumption
 Control
 Second, qualitative aspects of your efforts is
important such as value of a tweet about a brand

7. Nope Nope Nope
 Most Managers think that Social Media applications
as “just another” traditional marketing
communications vehicle.
 HUGE MISTAKE
 The social media environment is largely consumer-
— not marketer- — controlled.

8. Raging Cow
 In 2003, Dr. Pepper/7UP launched a product with its
Raging Cow campaign. The company enlisted a
group of six teenagers and 20-somethings to post
favorable reviews and spread positive word of mouth
about its new flavored milk drink, without disclosing
that the enlisted bloggers received incentives like
product samples, T-shirts and gift certificates. On the
surface, the blogs looked impartial and did not
appear to be affiliated with the company or the
drink, except for a few obligatory links to the Raging
Cow site.

9. Raging Cow
 But closer examination by a group of suspicious
bloggers revealed that the company was behind the
blogging effort. The marketing campaign was
subsequently attacked in the blogosphere.
 Bloggers started a boycott, and the product
disappeared.

10. Raging Cow

11. Raging Cow

12. Motrin
 Motrin. Johnson & Johnson’s Motrin brand
launched a video campaign in 2008 targeted to
“baby-wearing” mothers. This was a 45-second
commercial in which the voice-over of a supposed
mom talked conversationally about the burdens of
wearing your baby in a body sling.

14. Motrin
 A number of mothers were so offended by the video, which was
viewed as both condescending (“Wearing your baby seems to be in
fashion” was the opening line of the spot) and exploitive in
promoting Motrin as a cure for the back-breaking pain of baby
wearing, that they took to Twitter and the blogosphere to criticize
the brand in real time. Riding off the momentum of enraged tweets
from baby-wearing defenders, the “Motrin Moms” debacle
immediately became a top trending topic on Twitter Search.
 But instead of quick damage control, Motrin did nothing. Only after
mainstream media coverage, during which countless social media
experts weighed in and branded the effort with a unanimous
thumbs down, did Kathy Widmer, McNeil Consumer Healthcare’s
vice president of marketing, finally offer a limp apology. What’s
particularly relevant here is that the bulk of these events unfolded
over the course of 24 hours on a weekend.

15. What is Your Objective
 Direct sales, direct cost reductions or increases in
market share are desired outcomes
 Social media can
 improve efficiency of market research,
 decrease costs for customers services
 Help product development by enabling crowdsourcing etc.
 …….
 Social media characterstics are best for especially
three objectives

16. Social Media Objectives
Awareness
Engagement
Word-of-Mouth (WOM)

17. Metrics
 After you set your objectives you need to define your
metrics according to your objectives
 Your metrics can change according to social media
platforms

18. Metrics

19. Metrics
 To get an ROI estimate, managers would link the
social media metrics to an additional set of proxy
benchmarks (e.g., the likelihood of future purchase
by a user engaged with the company’s brand through
a specific social media application, or the reach of a
specific word-of-mouth element and subsequent
conversion to future sales

20. Metrics - Examples
 In 2007, Kellogg created an integrated digital media
experience for the “Special K Challenge” translate
those website interactions and click-throughs to
market response over 18 months, found that the
online ROI for Special K cereal was twice as large as
that from television
 http://my.specialk.com/mealplan/start/step1/

21. Metrics - Example
 Vocalpoint, Procter & Gamble’s social networking
site, has over 350,000 members who talk about P&G
products; by linking these customer investments in
brand conversation to sales, the site is credited with
market response increases of up to 30%.6
 http://www.vocalpoint.com/

22. Lets see some good examples
Brand Awareness

23. Lets see some good examples
 Several days before Election Day 2008, Starbucks
ran a spot on the “Saturday Night Live” show as well
as on YouTube, promoting a free coffee giveaway.
 Twitter mentions of Starbucks skyrocketed,
averaging a mention every eight seconds, which
translated into a sizeable increase in brand exposure


24. Lets see some good examples

25. Lets see some good examples
 K-Tec’s blender brand Blendtec posted a series of
humorous demonstration videos in which the
company’s founder, Tom Dickson, posed the
question “Will it Blend?” and then proceeded to
blend iPhones, glow sticks, golf balls and many other
products previously thought unblendable using his
line of hardy blenders.

26. Lets see some good examples

27. Lets see some good examples
 The “Will It Blend?” campaign quickly went viral and
as a result saw its sales grow fivefold. The BlendTec
videos have now been viewed more than 100 million
times on YouTube.

28. Brand Engagement

29. Nuts About Southwest
 Southwest Airlines has a blog
 “Nuts About Southwest” blog with podcasts, videos
and other social media tools
 Visits to the new and improved blog rose by 25%,
 Page views increased 40% and
 Visitors stayed 26% longer on the company’s
website.
 http://www.blogsouthwest.com/

30. Nuts About Southwest

31. Gretsch Guitars
 Gretsch Guitars, for its 125th anniversary, held a
contest on its MySpace page
 To find the next best unsigned independent band.
 900 bands entered the contest, and over 55,000 site
visitors voted for their favorite bands.
 By soliciting participation from both musicians and
their fans, Gretsch engaged its target customer and
raised awareness of the brand more broadly.

32. Boğaziçi Üniversitesi

33. Word of Mouth

34. Word of Mouth
 Technology journalist Jeff Jarvis blogged in 2005
 About the shoddy customer service he received from
Dell — his own “Dell Hell”
 Dell saw its customer satisfaction score drop five
points in one year.

35. Word of Mouth
 In 2009, Burger King
 “Whopper Sacrifice” Facebook application
 Unfriend 10 of their Facebook friends in exchange
for a free sandwich.
 Word of-mouth campaign resulted in members
unfriending a total of 234,000 Facebook friends
 http://www.youtube.com/watch?v=nelYIQUfR4E

36. How about profit?
 How can a company improve the ROI of its
social media campaigns?

37. A Seven-Step Framework for Social Media
Marketing
 Step 1: Monitor the conversations
 By monitoring brand-related conversations firms can gain
valuable insights
 monitored 825,091 conversations involving 1,736 individuals
across various social networking sites
 Step 2: Identify influential individuals who can
spread messages
 Use the data to identify a pool of influential individuals (we refer to
them as “influencers”)
 (1) the number of times an individual’s messages were forwarded
 (2) the number of connections that those messages jumped
 (3) the number of comments and replies the users received for each
message

38. How to Listen and find influentials?

39. A Seven-Step Framework for Social Media
Marketing
 Step 3: Identify the factors shared by
influential individuals
 commonalities among the candidates and create profiles of typical
influencers
 Customer Influence Effect (CIE) metric
 1. Activeness, 2. Clout, 3. Talkativeness of the receiver,
4. Likemindedness
 Step 4: Locate those potential influencers who
have interests relevant to the campaign
 influential social media users who are particularly interested in the
company’s category of goods and services
 Stickiness Index (SI), which measures the degree of WOM generated

40. A Seven-Step Framework for Social Media
Marketing
 Step 5: Recruit those influencers with interests relevant
to the campaign to talk about the company’s product or
service
 Step 6: Incentivize those influencers to spread
positive WOM about the product or service
 two stages: “Creations on the Wall” and “Share Your
Brownies.”
 Step 7: Reap the rewards from increasingly
effective social media campaigns
 “comments” and “conversations” to the financial metrics
 Customer Influence Value (CIV) metric that calculates the influence
of an individual’s WOM on future sales.

41. Results
 the total revenue generated from campaigns about
23% was attributable to conversations on Twitter
 about 80% was attributable to Facebook, with a 3%
to 8% overlap between the two social networks.
 Overall, the campaign was a huge success: Hokey
Pokey realized increases of 49% in brand awareness,
 83% in ROI and 40% in the sales revenue growth
rate.

42. Results