monetizing social marketing and measuring roi
TRANSCRIPT
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How CMOs are Monetizing Social Marketing and Measuring ROI
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Justin Bridegan, Senior Marketing Manager
MarketingSherpa / MECLABS Primary Research
@JustinBridegan
Sergio Balegno, Director of Research
MarketingSherpa / MECLABS Primary Research
@SergioBalegno
Kye Strance, Director of Product Marketing
Vocus
@KyeStrance
Introductions
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• MarketingSherpa
• Setting the stage for social media marketing monetization
• How CMO priorities for social marketing are changing
• What's driving the investment in social media programs
• How CMOs are calculating social marketing return on investment
• The first step to monetizing the social media channel
• Vocus
• 5 Tips for Social Marketing Success
Today’s webinar agenda
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Annual research cycle improves marketing know-how
• Publish research on what is working (and what isn’t) for marketers today
•Benchmark Reports, Case Studies
• Identify best practices and formulate practical methodologies
•Handbooks, Special Reports
• Teach marketers how to apply best practices and methodologies
•Summits, certification training, webinars
• This cycle is focused on strategies and practices for social media monetization
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The importance of social marketing maturityThree Phases of Social Marketing Maturity
Trial Phase Transition Phase Strategic Phase
Organization does not have a process or guidelines for
performing social marketing.
Organization has an informal process with a few guidelines it
sporadically performs.
Organization has a formal process with thorough guidelines it
routinely performs.
Poll #1 – Which statement best describes the process your organization uses to plan, execute and measure the performance of social media marketing programs?
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The importance of social marketing maturity
• Chart: 46% of CMOs in transition from the trial to the strategic phase
• Social marketing requires investment in human and other resources
• Strategic process needed to monetize social media channel and prove ROI
CMO priorities and perceptions driving ROI
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Priorities for social media are changing –Now it’s “show me the money"
• Social channel monetization factors are top-of-mind priorities for CMOs
• Goal of social channel monetization: Measureable return on investment
• Strategic phase organizations are 80% more likely than Trial to prioritize ROI
• Why? Trial phase organizations don’t have a process for performing social marketing or measuring ROI
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Perceptions driving social marketing investment
• If social marketing perceived to produce ROI, investment follows
• Strategic phase 4X as likely as Trial to produce measureable ROI
• Why? No process, no proof of ROI, no investment
• Think social marketing is free? You’re destined to get what you pay for!
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The promise of social marketing ROI a reality
• When ROI equals a positive %, earning more than costing
• Average social marketing ROI 95%
• One-in-four CMOs are doubling their social investment (100% ROI)
• Overcoming the myth that social marketing ROI isn’t measureable
Calculating the ROI of social media marketing
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• Formula: Return on investment = (Value gained from investment – Cost of investment) / Cost of investment
• Tracking the right metrics for determining the values and costs of social media marketing can be a challenge
• “Around 10% of our social media activity directly translates to bottom-line results, making ROI easy to determine for that portion. However, 90% of the work has to do with people building their reputation online and helping others, so they can effectively promote the brand online. That big chunk of work is impossible to measure in terms of ROI.” –CMO insight
ROI is a measure of financial value returned on every dollar invested
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When it comes to calculating social media ROI, some metrics matter more than others
• Qualitative, non-financial metrics CAN be measured
• Quantitative, financial metrics SHOULD be measured
• Financial values are metrics that matter most for calculating and proving ROI•Return on engagement, return on innovation, etc. mean nothing in the C-suite
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Values CMOs can use to calculate the Return
• Many values can be measured
• Estimated value of quantitative social media metrics
•Likes/Fans
•Followers
• Estimated value of qualitative social media metrics
•Sentiment
•Awareness/Voice
• These metrics useful to monitor audience but not to measure ROI
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Values CMOs should use to calculate Return
• Actual sales on ecommerce sites can be tracked to social media engagement
• Most organizations know the estimated value of a qualified lead – use it!
• There are two ways to gain value – increasing income and reducing costs•Not factoring social media’s ability to reduce customer support costs is a missed opportunity
• Which values can and should you use to calculate social marketing ROI?
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Costs CMOs are using to calculate Investment
• Investment side of ROI equals costs associated with social marketing
• Social falls into two main media categories – earned and paid
• Earned media time intensive tactic requiring more human resources
• Paid media cash intensive tactic requiring fewer human resources
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Formula for calculating the ROI of social marketing(Value gained from investment – Cost of investment) / Cost of investment = ROI
• ROI analysis: Social lead gen campaign
• Value: 500 qualified leads tracked to social at est value $150/lead = $75k
• Cost: Staff plus other expense = $15k
• ($75k - $15k) / $15k = 400% ROI
Value Gained Minus Cost
Divided by Cost
Equals
ROI
Monetizing social media requires strategic thinking
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The social marketing ROAD Map A method for mapping a social marketing strategy
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Research: Gathering intelligence on target audiences and their social media behavior
• Research is the first step in the ROAD Map methodology
• Monitoring helps identify and profile target audiences (vs. calculate ROI)
• Monitor characteristics and behaviors specific to social media
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Stop, look and listen –What to monitor on social media
Social media factors• Social voice (or strength)
• Sentiment
• Passion
• Unique authors
• Social reach
• Content downloads
• Content sharing
• Reviews and recommendations
• Platform preferences
• Audience segments
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Related search phrases
• Industry sectors
• Technologies
• Companies
• Brands
• Products
• Services
• Key issues
• Industry experts
• Key employees
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Social monitoring tools and solutions
% using solutions by type Monitoring target audiences
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Segmenting by social behavior and influence –Keep it simple
• Silent Majority• Joins but rarely participates
•Reads, watches, listens to UGC
•Few friends, contacts, followers
•Low level of social influence
• Vocal Minority• Joins and actively participates
•Shares UGC and commentary
•Many friends, contacts, followers
•Moderately high level of social influence
• Social Authority•Builds and moderates communities
•Creates and aggregates UGC
•Very many friends, contacts, followers
•Very high level of social influence24
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Profiling your target audiences
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Objectives: Defining objectives aligned with target audiences
Target Audience Segment Social Marketing Objectives
Email marketers in the Vocal Minority
• Increase ‘Likes’ on Facebook brand page by…• Increase website traffic from Facebook by…• Reduce costs to support this customer segment by…
Email agencies/consultancies in the Social Authority
• Increase Social Authority target list by…• Increase Twitter thought-leader page retweets by…• Increase link-backs from Social Authority blogs by…
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Actions: Creating an ‘effective’ social marketing tactical plan of action
Effective vs. ‘fast and easy’
Blogger relations effective but difficult – less use
•Use to target Social Authority
Social sharing less effective but less difficult – more use
Focus on effective tactics, not ‘fast and easy’
Top tactics: Engaging the vocal minority and pitching the social authority
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Tactics for engaging the Vocal Minorityand pitching the Social Authority
Engaging the Vocal Minority Vocal Minority extremely active –
high level of social influence
Use one-to-many tactics
Use target audience profile to determine where they are and what interests them
Join the conversation and engage the vocal minority accordingly .
Pitching the Social Authority Social Authority is the whale –
highest level of social influence
Use one-to-one tactics
Most blog but also microblog, social network, vlog, etc.
Apply practices similar to press relations but conform to social media culture and practices
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Devices: Selecting social platforms by tactical effectiveness and architectural fit
Analyzing strengths/weaknesses of social platforms/brands
You may need a social network –but which one?
•Leading brand, niche or custom
Conduct a SWOT-like analysis to prioritize social brands
Select social brands that fit your tactical plan and have a purpose
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Without a social marketing architecture Random acts of social marketing – no plan or purpose
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With a social marketing architectureHub and spoke framework
Hub sites for content and conversion
Spoke sites for building communities and relationships
Directs traffic flow in and out of hubs
Number of sites not important –a plan and purpose for every site is
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Plan and purpose for hub sites
Websites have become hub of overall marketing strategy
•Primary point of conversion
Blogs have become hub of social marketing strategy
•More dynamic, search friendly content
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Plan and purpose for spoke sites
Social network shares content linked to hub sites and builds relationships
Microblogs offer quick engagement with links to hub site content
Forums build technical community, provides customer self-service and generates product development
Content sharing sites store content for use on other platforms
Spoke sites drive traffic to hub site’s primary point of conversion
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The social marketing ROAD Map A method for mapping your social marketing strategy
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5 Tips for Social Media Success
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Know What Your Audiences Care About
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Know Who’s Talking: The Answer May Surprise You
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Keep Track of Sentiment
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Don’t Forget Traditional Media
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Measure
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