pmi europe - eric weaver - "the great social media crisis of faith"

My clients

believe. VOICEOVER: I speak to clients worldwide about their

social efforts. And almost universally, they’re telling me that they’re having a Crisis of Faith. They believe in the power of social for awareness. Preference. Conversion.

Loyalty. All the good things!

Unfortunately, 3 major challenges are shaking that faith.

ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 2

#1: The content glut is killing reach

OUR CLIENTS FACE 3 MAJOR ISSUES


In 2012, Content got us excited.

VOICEOVER: Amazingly successful content campaigns like this one showed the power of social (http://j.mp/oreo_daily). Clients believed and invested in content. Only problem? Today no one is seeing it.


THESE DAYS, ORGANIC REACH IS CLOSE TO

ZERO.


VOICEOVER: With over 1500 new posts every newsfeed refresh, organic reach is nearly zero.

…which means of your fans don’t see your content investment on a good day

Content visibility for five Mediabrands clients

Client Posts/ month

Total reach per post

Avg reach per post Fans Visibility

Beverage 2 10,254 5,127 93,000 5.51% Gaming 14 630,655 45,047 500,865 8.99%

Chemicals 6 13,574 2,262 148,000 1.53% Insurance 54 155,102 2,872 48,000 5.98% Software 28 577,589 20,628 638,000 3.23%

AVERAGE 5.04% 95% ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 6

#2: Paid social ads now a requirement


€


Facebook organic reach for one Mediabrands client

VOICEOVER: This organic reach is pretty pathetic, right? Watch what happens when we spend 1000€ to boost 2 posts.


Social networks tell us: “If you pay, we’ll make it worth your while.”

PAID REACHBOOM! PAID REACH

VOICEOVER: Boosting breaks the reach barrier. By paying, clients get the reach they need (even if social networks are over-rewarding them to incent more spend). But why pay for reach? Never had to before!


All good things (engagement, loyalty, conversion) come to those who Reach

VOICEOVER: Because reach is the only path to Engagement – and consequently to awareness, trust, preference, conversion and loyalty. Paid reach is now required to make results happen in Social Media Marketing.


Asking for more money is risky business.

VOICEOVER: So we now need a new budget for paid social. But asking for more money is politically risky. You need to be armed with a strong argument and good data.


#3: No fiscal metrics for social


“I’ve got Likes, Retweets and

Shares. No idea what they’re

worth.”


“We don’t internally have the confident data we need to

convince leaders or peers that they should invest in some of

this new technology or positions

or skills that will be crucial to a growth plan”

Adrian Parker,

Patron Spirits Company

“I also have no idea about what’s

working and what’s not.”

Director of Marcom, US fast food giant

VOICEOVER: Brands everywhere are telling us the same thing: that the “soft metrics” of social (likes, retweets, etc.) don’t really tell them what they need to measure success.

And that they feel stuck. No financial metrics – no new funding.


Social ROI: complex and time-consuming. 47% have given up on “tracking social ROI”

VOICEOVER: It’s so bad that nearly half of

companies have given up on the idea of tracking social ROI. This leaves

Social Marketing in “Budget Prison.” It can

never prove its worth, so it never gets the funding it

deserves.

THIS IS BAD FOR YOU, Social Marketer. This is bad for your customers,

too.


WE NEED TO BUST SOCIAL MEDIA OUT OF “BUDGET PRISON”


Step 1. We need a means of calculating the worth of our social efforts.


“What would I have had to pay using paid media

to achieve the same result?”

Rather than building questionable, complex ROI spreadsheets, EMV is easily calculated and automated to

allow daily measurement.

We need one performance metric to rule them all — Earned Media

Value (in cash) €


“EMV? Isn’t that the failed AVE

model?”

No. AVE measures column inches of PR pickup. EMV measures actual social activity – discrete user actions – and associates a value. A click is a click is a click.


Here’s how we do it. First, let’s price our KPIs. How have past campaigns performed?

PAGE CPM COST / ENGAGEMENT

COST / ACQUISITION

@Brand_DE 0.55 € 0.85 € 1.05 €

@Brand_CH 1.00 € 0.85 € 1.53 €

@Brand_AT 0.75 € 0.75 € 1.15 €

PRICING DATABASE

VOICEOVER: We recommend calculating an individual price for every social KPI. Because

a Like for one brand in one country will be worth something different for another brand in another country. We store that in a pricing

database.


API

Next, we read all earned activity via API

PERFORMLY CLOUD-BASED ROI PLATFORM

VOICEOVER: We currently use APIs to pull all social KPIs – every fan interaction. This automates data gathering daily.


API

Then, calculate Earned Media Value.

PERFORMLY CLOUD-BASED ROI PLATFORMVOICEOVER: Then we calculate the worth of these fan interactions based on our prices in the pricing database.


x Price Per Fave =

x Price Per Like =

x Price Per Play =

Some clients weight their

Earned Media Value based on

how it was earned

EXPOSURE (x1). We need this to allow for engagement. ACQUISITION (x1.5). More fans = more opportunity to create conversion. ENGAGEMENT (x2). If fans engage with us, they build touchpoints, trust and preference.

VOICEOVER: Some clients are very particular about how they value Exposure metrics vs Acquisition metrics vs

Engagement. So we weight the prices accordingly.


API

Finally, aggregate all earned value.

VOICEOVER: Our Performly analytics tool then displays total daily Earned Media Value.


I can now compare performance

between pages and against

benchmarks

VOICEOVER: We capture all this great data via API. Now we can start charting it to show us actionable insights.


I can also watch trends over time

VOICEOVER: Which days earned the most value? Which posts generated the most value?


Example Performly content performance chart

FAN ACQUISITION

FAN

EN

GA

GEM

ENT

0 2 4 6 8 10

20

40

60

This post has low

engagement, low acquisition. Performly might calculate EMV

at

28€

VOICEOVER: Let’s look at how individual posts perform in terms of cash. Because NOW WE CAN.


Content performance

FAN ACQUISITION

FAN

AEN

GA

GEM

ENT

0 2 4 6 8 10

20

40

60 An easy like, this post has high

acquisition but low engagement. Few

touchpoints created by fans. Performly

might calculate it’s worth as

252€.


Content performance

FAN ACQUISITION

FAN

EN

GA

GEM

ENT

0 2 4 6 8 10

20

40

60

This very controversial post has high

engagement, but low acquisition. Performly might show it earned

3075€ but generated

significant unfollows.


Content performance

FAN ACQUISITION

FAN

EN

GA

GEM

ENT

0 2 4 6 8 10

20

40

60

This post is doing everything right. High acquisition

& high engagement.

Performly says it created

7147€ of marketing

impact and grew the fanbase.


Now we can have a VERY different kind of conversation with the CFO and CMO

THESE NEW FANS, AND OUR EXISTING FANS,

CREATED

OF EARNED MEDIA AND BRAND TOUCHPOINTS

“HEY, THANKS FOR THE

OUR SOCIAL PROWESS PRODUCED

OF MARKETING IMPACT!”

PERFORMLY SAYS WE GAINED

NEW FANS 12,500 47,700€

“CFO, I’D LIKE

TO PROMOTE THIS POST:”

10,000€

47,000€ 10,000€


What happens when we excel at resonating with our fans?

12,400 tweets 1,460,000 followers T-Mobile US: 510,000 followers

VOICEOVER: T-Mobile’s John Legere is quite prolific (sometimes controversial) – so much so

that he has nearly triple the fans of his company.


John’s impact to T-Mobile Marketing

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

March April May June July August 6 M

onth

Run

ning

Tota

l EM

V

Mon

thly

EM

V

Running Total Earned Media Value

John’s total Twitter EMV in 6 months: 8,500,000 €

T-Mo’s total Twitter EMV in same period: 17,700,000 €

VOICEOVER: John creates a MEANINGFUL impact to T-Mo’s marketing efforts. His Twitter account alone can generate millions in Earned Media Value – a significant portion of T-Mo’s total budget.


Highest daily EMV: 309,000€

$0

$100,000

$200,000

$300,000

$400,000

EM

V p

er D

ay

VOICEOVER: In just one day alone, John generated around $375,000.


Step 2. Rethink social team structure & skills


In 2015: Social has really become a fully paid channel. Paid knowledge and budgets are essential. And CFOs now demand fiscal metrics.

ADVERTISING KNOWLEDGE

In 2015, social teams need A.C.E. skills: Advertising, Content AND Engagement

In 2012: Brand content became a crucial part of the social mix. Essential skills for today as well. CONTENT CAPABILITY

ENGAGEMENT SKILLS

In 2008: Social was all about Community, Customer Care and building trust. Measurement/ROI wasn’t critical. These days, clients still want to engage with you, and you can’t blow it.


Your paid social team should be able

to answer these questions

Which paid social platforms should I use or know? What kind of talent do I need? What kinds of posts should I boost? And why? How do I justify talent and tool costs? How do I manage inbound campaign performance signals? How do I report back to management on spend performance?


Step 3. Rethink your approach to content


If we can measure content’s worth, we can measure fan resonance

VOICEOVER: By looking at YouTube EMV, we can start to work out ROI on individual videos.


Performly & Listening Reports

And if we can measure resonance, Agile Social Content is now possible

VOICEOVER: People talk about Agile Social Content. Now we can actually measure performance and adapt our

approach daily. ERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 39

Using Earned Media Value to test creative approaches After two years, key KPIs on the fanpages for a soap brand stalled, remaining stagnant month after month. The social team needed to identify a new content strategy to boost engagement. Performly clearly showed the highest-performing content was imagery and stories about “normal” people to whom the audience could relate. Fans created 4x more earned media when page posts showed ordinary-looking people versus models. The client social team responded by focusing on user-generated content for the next six months.

BEFORE

AFTERERIC WEAVER • @WEAVE • SLIDESHARE.NET/WEAVE • PRESENTED AT #PMIEUR 23 JUN 2015 40

Finally, knowing EMV means Social Media

teams finally can have the numbers to give them a meaningful voice at the Annual

Budget Meeting.

Credibility FTW!


SO…


This presentation was written by Eric Weaver for the June 2015 Performance Marketing Insights conference in Berlin. I am no longer with Mediabrands. For more information about Performly, please visit performly.social or contact Jason Carter at [email protected]. In October 2015, I will be teaching these concepts at Dublin City University’s (Ireland) Masters of Digital Marketing Programme. I can be reached at @Weave.

THANK YOU, ATTENDEES!


pmi europe - eric weaver - "the great social media crisis of faith"

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