July Sempo7 29 B

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This presentation was given 7-29-10 to the Pittsburgh SEMPO group. We discussed the economic value of FANS and how to calculate the returns on Facebook campaigns.

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July Sempo7 29 B

  1. 1. The ROI of Facebook Quantifying The Effectiveness of Social Media Marketing
  2. 2. Audience Poll <ul><li>Agency or Company? </li></ul><ul><li>Total Marketing Budget > $50,000? </li></ul><ul><li>B2B or B2C? </li></ul><ul><li>Currently Have Company Presence On Facebook? </li></ul><ul><li>Using Social Media Analytics Tool? </li></ul>
  3. 3. The ROI Of Facebook <ul><li>This presentation will be split into two parts: </li></ul><ul><li>Facebook As A Marketing Channel </li></ul><ul><li>Quantifying Social Media Marketing Campaigns </li></ul>
  4. 4. The ROI Of Facebook <ul><li>Facebook As A Marketing Channel </li></ul>
  5. 5. The ROI Of Facebook <ul><li>People on Facebook </li></ul><ul><li>More than 500 million active users </li></ul><ul><li>50% of active users log on to Facebook in any given day </li></ul><ul><li>Average user has 130 friends </li></ul><ul><li>People spend over 500 billion minutes per month on Facebook </li></ul>Facebook Statistics, http:// www.facebook.com/press/info.php?statistics
  6. 6. The ROI Of Facebook Who is a Facebook Fan? 33% of 500 Million = 165 Million Fans
  7. 7. The ROI Of Facebook <ul><li>Why a Facebook Fan? </li></ul>Social > Tangible Return > Tangible Return > Tangible Return > Social > Motivation
  8. 8. The ROI Of Facebook <ul><li>Are My Competitors Using Social Media? </li></ul>* * * * * *
  9. 9. The ROI Of Facebook Are My Competitors Getting Customers Using Social Media?
  10. 10. The ROI Of Facebook Do My Competitors Plan On Using Social Media To Grow Their Business?
  11. 11. The ROI Of Facebook <ul><li>The Study </li></ul><ul><li>The quantitative research for this Syncapse undertaking was conducted in conjunction with Hotspex Market Research and consisted of a 25-minute survey using their online panel. Data was collected from over 4,000 panelists across North America in June 2010. </li></ul>THE VALUE OF A FACEBOOK FAN: AN EMPIRICAL REVIEW JUNE 2010 by Syncapse in association with hotspex
  12. 12. The ROI Of Facebook <ul><li>Facebook fans reported spending $71.84 more per year than non fans. </li></ul><ul><li>McDonald’s saw the largest variability, with Fans reporting spending $159.79 more per year than non-fans. </li></ul><ul><li>Oreo saw the lowest value with a difference of $28.52. </li></ul>Spending
  13. 13. The ROI Of Facebook <ul><li>On average, Facebook fans are 28% more likely to continue using a brand than are non-fan consumers. </li></ul><ul><li>Adidas had the highest variance of loyalty between fans and non-fans with 42.5% of fans indicating a heightened likelihood of continued product usage. </li></ul><ul><li>Secret saw the lowest difference in loyalty, only 15.83% between the two groups. </li></ul>Loyalty
  14. 14. <ul><li>On average, 68% of Facebook fans indicated that they are very likely to recommend a product across the 20-top leading brands, contrasted by 28% for non-fans. </li></ul><ul><li>>>That’s 2 ½ times more likely to recommend if a fan! <<< </li></ul>The ROI Of Facebook Likely to Recommend
  15. 15. <ul><li>81% of fans said they feel connection/empathy with the brand, compared to 39% of non-fans. </li></ul><ul><li>87% said they felt warmth, gratitude, happy or satisfied, compared to 49% of non-fans. </li></ul>The ROI Of Facebook Affinity
  16. 16. The ROI Of Facebook Total Value Total Value = $136.38 -$0.47 Cost of Fan Acquisition $6.79 Earned Media Value $13.71 Recommendations $43.71 Loyalty $71.84 Spend Value Category
  17. 17. The ROI Of Facebook <ul><li>Quantifying Social Media Marketing Campaigns </li></ul>
  18. 18. The ROI Of Facebook <ul><li>Return on Investment </li></ul><ul><li>Investment – Resources, time, or money spent on a campaign </li></ul><ul><li>Return – positive or negative results of a campaign </li></ul>
  19. 19. The ROI Of Facebook <ul><li>Types of Investments </li></ul><ul><li>Any resource that has cost and is used for a campaign </li></ul><ul><li>Internet Connection </li></ul><ul><li>Desktop PC Use </li></ul><ul><li>Blogger’s Time </li></ul><ul><li>Office Space </li></ul><ul><li>Travel Time </li></ul><ul><li>Travel Costs </li></ul><ul><li>Parking </li></ul><ul><li>Web Analyst’s Time </li></ul><ul><li>Ad Buys </li></ul><ul><li>Graphics/Creative </li></ul><ul><li>Administration </li></ul><ul><li>Campaign Planning </li></ul><ul><li>Reporting </li></ul><ul><li>Rebates, Discounts, Coupons </li></ul>
  20. 20. The ROI Of Facebook <ul><li>Types of Returns </li></ul><ul><li>A change in the business, positive or negative, </li></ul><ul><li>caused by a campaign </li></ul><ul><li>New Customers </li></ul><ul><li>Return Customers </li></ul><ul><li>Sales per Customer </li></ul><ul><li>Dollars per Customer </li></ul><ul><li>Additional Sales </li></ul><ul><li>Sales per Visit </li></ul><ul><li>Brand Awareness </li></ul><ul><li>Profit per Sale </li></ul><ul><li>Cost per Sale </li></ul><ul><li>Cost of New Customer </li></ul><ul><li>Incremental Sale Cost </li></ul><ul><li>Incremental Sale Profit </li></ul>
  21. 21. The ROI Of Facebook <ul><li>Components of a Large Company Facebook </li></ul><ul><li>Campaign Investment </li></ul><ul><li>On-Going Blogging Campaign </li></ul><ul><li>12 Bloggers Time 1 hr/week, 52 weeks@ $25/hr </li></ul><ul><li>= $15,600 </li></ul><ul><li>Manager 1 hr/week, 52 weeks @$35/hr = $1,820 </li></ul><ul><li>Blogger Planning 1hr/month@ $35/hr = $420 </li></ul><ul><li>Total Campaign Investment > $17,840 </li></ul>
  22. 22. The ROI Of Facebook <ul><li>On-Going Blogging Campaign </li></ul><ul><li>5 New Placements, Actual Profit $10,000/Placement = $50,000 </li></ul><ul><li>Total Campaign Return > $50,000 </li></ul>Components of a Large Company Facebook Campaign Returns
  23. 23. The ROI Of Facebook <ul><li>Components of a Large Company Facebook </li></ul><ul><li>Campaign Return On Investment </li></ul>On-Going Blogging Campaign Total Campaign Investment > $17,840 Total Campaign Return > $ 50,000 For every dollar invested, $2.80 was returned Net Return, $50,000 - $17,840 = $32,160 This campaign made the company $32,160
  24. 24. Questions

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