measure social media barbara lewis ss
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How media success is measured; thoughts on how to measure social media results; presentation at Online Community Business Forum Mar 2009 Sonoma CA.TRANSCRIPT
Presented by Barbara Lewis
Measure Social Media
Presented by Barbara LewisMarQuantAnalytics.com
On-line Business Community ForumSonoma, California
March 20, 2009
Problem:Too Many Marketing Activities ~ $400b/year
Events
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19221856
1889
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What’s driving sales?
1941
1980s
Problem: Too ManyInternet Marketing Activities ~ $25b/year
Mid ’90s Late ’90s
Early 2000s Mid 2000s
3What’s driving sales?
BannersKey words
Late2000s
Social MediaClicksPaid searchEmail
Early 2000s
Affiliates
Mid 2000s
SEO
Social Media Makes Measurement Harder
Web 2.0
PodcastsRSS FeedsYouTubeLinkedInMySpace What’s the result
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MySpaceWikis
2-way
BlogsTwitterFacebookDeliciousDigg
What’s the resultthat impacts thefirm?
Now we can determine what’s working & what’s not
Optimization
EconometricsResults determine the
effectiveness ofmarketing spend –what’s working & what’swasted.
We gather variables that couldaffect outcomes and analyze.
We take results of econometricanalysis and build optimizationmodel.
OptimizationResults provide optimal
budget across marketingactivities for maximumperformance.
Econometrics & optimizations have been used for decades with CPGcompanies; in the past 10 years for other companies. MarQuant Analyticshas been doing econometrics & optimizations since 2003.
Broad range of data inputs can affect outcomes
TV Print DM Web
Housing startsUnemploymentGas prices
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Acquisition External Factors
OtherControllable
FactorsNew Customers
Outcomevariables can becustomer equity,new or totalcustomers,profitability,market share,unit sales, etc.
Sales force #ATMs/branches per capita
Oth
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Brand Product
National X X
Local X X
Econometric analysis determines relationshipamong variables over time
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Week 1 2 3 4 5 6 7….156
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Weekly data over a three-year period is ideal.7
Variation is key
Econometric analysis produces equation thatexplains objective (revenues in this case)
8R2 indicates % of variance that is explained in prediction compared to actual.
ji
0.100
0.031 0.154 0.111
n m0.091 0.122i=1 j=1
Monthly Revenues=Base Revenues x Television
x Radio x Web Display x Web Search
x Print x Direct Internal Factors External Factors
Equation
Econometric results include elasticities thatindicate the lift for marketing variables
Marketing Expense Elasticity
1. Television 0.100
2. Radio 0.020
3. Web Display 0.154
The response parameters(predictors) are expressedas elasticities.
For example, if the “TVspend” elasticity = 0.1 then
4. Web Search 0.111
5. Print 0.091
6. Direct Mail 0.122
spend” elasticity = 0.1 thenthat means that increasingTV spend by 10% will yield a1% increase in revenue.If Print spend increases 10%,revenue increases 0.9%.
Elasticities guide reallocation of marketing budget tomarketing activities that are generating the most lift.
Optimal Marketing Mix Spend$100 Million Budget
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Typical Social Media Metrics
Content MetricsRelevance Metrics
Impact Metrics
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Impact Metrics
Content Social Media Metrics
DescriptionWho is talking about you?Who is talking about your industry?What are they saying?
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What are they saying?Examples:Net Promoter score, Google Alerts, Cymfony, Radian6,
Buzz Metrics, Techrigy, Blogsearch, Technorati, SocialMedia Platform Provider
Relevance Social Media MetricsDescription – relate your offer with customer interests*
Fundamental Metric Source Reveals
Influence Time on siteBounce rate
Web AnalyticsGoogle AnalyticsOmniture & Web Trends
Value of the opinion &conversations ofinterested purchasers
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Engagement Pass AlongsComment to Post RatioDiggs, Stumbles & bookmarksPodcast Listen & Views
Above+DoubleClick & DiggStumbleUponDel.icio.us
Message interest level:will customers forwardreferral
Loyalty Blog Post for BrandRecommendationsTweeters
BlogPulseGoogle AlertsCymfony & TechrigyBlogserch & Technorati
Context & intensity ofblog posts
*Social Media Marketing – An Hour a Day by Dave Evans
Impact Social Media MetricsDescription – measure effectiveness*
Fundamental Metric Source Reveals
Audience ReferrersDemographics
Web AnalyticsGoogle AnalyticsOmniture & Web TrendsDoubleClick
To Whom your socialmedia campaign isappealing
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DoubleClick
InfluenceLoyalty
Time on siteBounce rate
Above +Repeat Customers
Audience involvementwith message
Action ConversionsReviewsRecommendationsTweets, etc.
Above +Reviews & RatingsPlatformNet Promoter
Number of desiredoutcome (productspurchased) e.g. Tweetreference to purchase
*Social Media Marketing – An Hour a Day by Dave Evans
What are the Social Media Metrics?Depends on Business Goal
Business Goal $ Metrics
Subscription Customer Lifetime Value $ SpendRetention rate
Advertising $ DemographicsNumber of visitors/members
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Number of visitors/membersTime on site – pay attentionPass alongs
Users Cost reduction # problems solved by users# problems /time tech support
Insight SolutionsQuality of solutionsDemographics# & volume of conversation
Predictive analytics
Case Study – computer company
Problem: Can we leverage socialmedia to generate $
Solution: Offer only social mediaspecial promotion
Benefit: Generated $1 million in
Self Contained DataMarket Response
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Benefit: Generated $1 million inrevenue
Holistic ApproachProblem: Determine if social media is workingSolution: Analyze data (all marketing activities, external,
economic, etc.)Benefit: Identify impact of social media on business goals
Recommendations
Tie social media objectives to business goalsIdentify data that measure business goal achievementCapture appropriate data
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Analyze dataMonitor changes in input/output variables to
determine what’s working and what’s not workingTest various options
What’s Next?
Social Capital – value of connections among people insocial networks
Currently no measure for social capitalWhat metrics would define social capital?
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What metrics would define social capital?
Pilot program to determine social capitalmeasurement and relationship to business goals
Do you want to participate?
For More Information Contact:Barbara LewisTel: (310) [email protected] North Canon Drive, 4 th FloorBeverly Hills, CA 90210www.marquantanalytics.com