bringing smart and sexy back: pay-per-success model in social media advertising

8 JUNE 2011

Bringing smart & sexy backThe pay-per-success model in social media advertising

Octavian MihaiRock&Social

Internet Week New York 8 June 2011

OCTAVIAN MIHAI :: ROCK&SOCIAL

NEW YORK INTERNET WEEK 2011 8 JUNE 2011

1. SHORT STORY OF R&S

2. SOCIAL MEDIA & BRAND COMMUNITY MODEL

3. PAY-PER-SUCCESS MODEL & BUSINESS CASE

4. Q&A FUN, FUN, FUN!

OUR STORY

THE NAME

LOGOS FROM CUTE TO SEXY

JULY 2010

AUGUST 2010

SEPTEMBER 2010

MARCH 2011

Branding by our patient partners StudioFeed.ca

BUSINESS CARDS CUTE TO SEXY

AUGUST 2010

OCTOBER 2010

MARCH 2011

MAY 2011

T-SHIRT MANIA

FOUNDING PRINCIPLES

BE GLOBAL

SOCIAL MEDIA

PAY-PER-SUCCESS

WORK WITH RESPECTFUL CLIENTS

R&S 3 TIER SERVICES

STRATEGY

PLANNING

INSIGHTS

Community managementTrainingPublic Relations

SM development Facebook appsMobile apps

R&S 3 TIER PARTNERSHIP

DIRECT CLIENTS

AGENCIES

PARTNERS

GLOBAL

MONTREAL

NEW YORK

GUADALAJARA

8 JUNE 2011

PASSION AND THEORY

WE ARE IN THE BUSINESS OF BRAND COMMUNITY BUILDING.

NOT (ONLY) ABOUT

CONVERSATIONS

NOT (ONLY) ABOUT

ENGAGEMENT

NOT (ONLY) ABOUT

TECHNOLOGY

NOT (ONLY) ABOUT

CONVERSION

SOCIAL MEDIA

(FOR LACK OF A BETTER AND WIDELY ACCEPTED WORD)

IS ABOUT THE DEMOCRATIZATION OF IDEAS

IS ABOUT THE CREATION OF COMMUNITIES OF IDEAS

AND FROM A BUSINESS PERSPECTIVE

IT’S ABOUT CREATING

MEANINGLESS

Daniel Hernandez

MEANINGFUL

Daniel Hernandez

RELATIONSHIPS BETWEEN CONSUMERS AND YOUR BRAND

SOCIAL MEDIA FACILITATES THE CREATION OF A CONSUMER BRAND COMMUNITY

Gregory A. Perez

YEEEEE…

FUN, FUN, FUN!

THESE ARE YOUR EMPLOYEES, YOUR CONSUMERS, YOUR REGULATORS

SEE YOUR BRAND COMMUNITY AS A SOCIAL CRM SYSTEM ON STEROIDS

SOCIAL MEDIA TOUCHES EVERY ASPECT OF YOUR BUSINESS

MARKETING

CUSTOMER SUPPORT

PRODUCT, ETC

8 JUNE 2011

A SIMPLE BRAND COMMUNITY MODEL

BRAND COMMUNITY IS A STRATEGIC APPROACH TO BUSINESS THAT HAPPENS TO USE SOCIAL MEDIA

A STRONG BRAND COMMUNITY WILL

DECREASE MARKETING AND SALES COSTS

INCREASE BRAND EQUITY AND SALES

PROVIDE DETAILED BUSINESS INTELLIGENCE

INCREASE EMPLOYEE ENGAGEMENT AND DECREASE HR COSTS

BRAND COMMUNITY ATTRIBUTES

ENGAGEMENT

PLATFORMS

CREATING A BRAND COMMUNITY

1. CHOOSE A BRAND COMMUNITY PLATFORM

THINK OUTSIDE OF FACEBOOK

OR NOT

GENERAL BRAND COMMUNITYAGGREGATOR : FACEBOOK, ELETTER, FORUMS…

SOCIAL CRM

SAP FACEBOOK & TWITER BUSINESS ADD-ONS

2. CREATE YOUR AMBASSADOR VIP COMMUNITY

VIP AMBASSADOR COMMUNITYDETECT ENGAGED MEMBERS

FANGAGER.com

PRIVATE VIP COMMUNITY

VIP AMBASSADOR COMMUNITY

ThisWeekInStartups.com

3. DETECT AND BUILD YOUR INFLUENCERS COMMUNITY

INFLUENCERS AROUND YOUR BRAND COMMUNITY

MVP INFLUENCER COMMUNITY

Radian6

GENERATE FEEDBACK LOOP BETWEEN YOUR BRAND COMMUNITIES TO INCREASE SIZE, ENGAGEMENT AND REACH

8 JUNE 2011

PAY-PER-SUCCESS

LINK REMUNERATION WITH RESULT MILESTONES

PAY-PER-SUCCESS ADVANTAGES

EVERYBODY IS FOCUSED ON RESULTS (AGENCY AND CLIENT)

PROCUREMENT IS HAPPY

CONSUMER GETS THE BEST DEAL

DEFINING SUCCESS KPIS

REMEMBER THAT SOCIAL MEDIA TOUCHES EVERY ASPECT OF YOUR BUSINESS

HR KPIS

NO QUALIFIED CVS

EMPLOYEE ENGAGEMENT

MARKETING KPIS

BRAND AWARENESS

MARKET SHARE VS COMPETITION

SALES KPIS

QUALIFIED LEADS

CUSTOMER ACQUISITION

COMMUNITY BASED KPIS

ENGAGEMENT %

REMUNERATION MODELS

CLASSICAL AGENCY REMUNERATION

RETAINER BASED YEARLY BUDGET

CAMPAIGN BASED30% + 40% + 30%50% + 50%

PAY-PER-SUCCESS MILESTONE-BASED REMUNERATION

PLANNING + PRODUCTIONSTRAT, PLANNING, DEVELOPMENT

40% - 60% UPFRONT

CAMPAIGN PHASEPROPORTIONAL PAY

MILESTONE 1 - 3PERFORMANCE BASED

E.G. CLIENT PAYS

40% - 60% AT FIRST

REST ONLY AFTER AND IF 40% - 60% OF RESULTS ARE ACHIEVED

E.G. AGENCY RECEIVES

40% - 60% AT FIRST FOR PRODUCTION AND TO START THE CAMPAIGN

REST AFTER RESULTS ARE ACHIEVED

8 JUNE 2011

A SIMPLE PAY-PER-SUCCESS BUSINESS CASE & PROCESS

STEP 1

MONITOR AND ANALYZE

BRAND & CATEGORY DEVELOPMENT INDEX (BDI & CDI)

GROWTH POTENTIAL INDEX (GPI)

COMPETITOR ANALYSIS

DEMOGRAPHIC ANALYSIS

CTR, CPC, CPM, CONVERSION RATES, COST PER ACQUISITION, COST PER LEAD

PROFIT MARGINS

EXAMPLE

SAY, CLIENT NEEDS TO EXPAND HER FACEBOOK BRAND COMMUNITY

EXAMPLE

GATHER ALL NECESSARY BENCHMARKS: COMPETITOR ANALYSIS, DEMOGRAPHIC ANALYSIS, ETC

TIPS TO DEFINE KPIS

SELL AN ANALYSIS MANDATE

RUN AN INITIAL CAMPAIGN

BENCHMARK ON COMPETITION AND PREVIOUS EFFORTS

STEP 2

DEFINE YOUR CLIENT’S KPIS

EXAMPLE

COMMUNITY SIZE: 50K

ENGAGEMENT: 10%

STEP 3

ANALYSE BENCHMARKS & NEGOTIATE

EXAMPLE

QUALIFIED MEMBER: $0.75

ENGAGEMENT If under 5% then $0

If 5-10% then + $1 / engaged member

If higher than 10% then + $1.2 / engaged

member over 10%

DEFINE CAMPAIGN CRITERIA

MAXIMUM BUDGET $75 000

DURATION 3 MONTHS

ACCOUNTSACCESS ALL ACCOUNTS AND ANALYTICS

COMMUNITY MANAGEMENT

IMPLEMENT THE COMMUNITY MANAGEMENT PLAN

STEP 4

REMUNERATION MODEL

EXAMPLE

A. QUALIFIED MEMBER: $0.75

EXAMPLE

B. ENGAGEMENT / MONTHIf under 5% then $0

If 5-10% then + $1 / engaged member

If higher than 10% then + $1.2 / engaged member

over 10%

EXAMPLE

FOR 50 000 & 10% OVER 3 MONTHS ESTIMATED CAMPAIGN COST $47.500

PAY-PER-SUCCESS MILESTONE-BASED REMUNERATION

MONTH 1SETUP: STRAT + DEV

40% = 20 000 MEMBERS$15 000 TO START

MONTH 2

CAMPAIGN: PROPORTIONAL

30 000 MEMBERS

10% ENGAGEMENT

$7 500 AT 30 000 +

$3 000 / MONTH

MONTH 3

CAMPAIGN: PROPORTIONAL

60 000 MEMBERS

15% ENGAGEMENT

$22 500 AT 50 000 +

$11 000 / MONTH

END CAMPAIGN

60 000 QUALIFIED MEMBERS

15% ENGAGEMENT$59 000

PROJECTIONS

CLIENT WAS READY TO PAY $70 000

OBJECTIVES50 000 & 10% = $47.500

RESULT60 000 & 15% = $59.000

STEP 5

5… …

DON’T YOU KNOW THAT THE TIME HAS ARRIVED…

STEP 5

EXECUTE CAMPAIGN

BE CREATIVE

MONITOR

OPTIMIZE

ITERATE FUN FUN FUN

RECAP PAY-PER-SUCCESS

1. MONITOR AND ANALYZE

2. DEFINE YOUR CLIENT’S KPIS

3. ANALYZE AND NEGOTIATE

4. BUILD REMUNERATION MODEL

5. EXECUTE CAMPAIGN

PAY-PER-SUCCESS PHASES

• 40% - 60% AT START

• HIGHER MAXIMUM BUDGET – KEEP

INCENTIVES UP – MIN 20%

• GATHER BEST DATA AND NEGOTIATE

• AGENCY MUST HAVE STRATEGIC LEAD

• CLIENT MUST PAY FAST

PAY-PER-SUCCESS RULES

LAST THOUGHTS

PAY-PER-SUCCESS WALKS THE TALK LINKING REMUNERATION WITH ADVERTISING MILESTONES

THE BRAND COMMUNITY APPROACH HELPS YOU ASK THE RIGHT QUESTIONS

SOCIAL MEDIA ADVERTISING IS ABOUT CREATIVITY AND BUILDING A COMMUNITY NOT ONLY ABOUT AD-WORDS AND PAY-PER-CLICK.

CREATIVITY CAN BE USED EVERYWHERE EVEN IN YOUR BUSINESS MODEL.

8 JUNE 2011

WHERE TO ROCK&SOCIAL?

CHAMPION PAY-PER-SUCCESS & BRAND COMMUNITY BUILDING

STAY SMART & SEXY

KEEP ON HAVING FUN

2011 OFFICIAL OPENING IN NEW YORK… STARTING THIS FALL

2012 BACK AT INTERNET WEEK THE STORY WILL CONTINUE!

8 JUNE 2011

LET IT ROCK & PLEASE CONNECT

8 JUNE 2011

HERE IS A CUTE PIC

8 JUNE 2011

PRESENTATION AVAILABLE AT

@ROCKANDSOCIAL

@OCTAVIANMIHAI

WWW.ROCKANDSOCIAL.COM

THANK YOU! HOPE IT HELPED!

OCTAVIAN MIHAI

CEO, Co-Founder

o@rockandsocial.com@octavianmihai@rockandsocial

PHOTOS ARE PROVIDED BY THE INTERNETS.LET ME KNOW IF YOU KNOW THE CREDITS OR THEY BELONG TO YOU AND WANT ME TO TAKE THEM OUT.

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