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SOCIAL MEDIA IS DEAD LONG LIVE SOCIAL MEDIA ROI Stefanos  Karagos  |  XPLAIN  |  March  2011  

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DO U HAVE A FB PAGE?

22-Mar-11 Social media is dead. long live social media roi

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A TWITTER PAGE?

22-Mar-11 Social media is dead. long live social media roi

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A SOCIAL MEDIA TEAM?

22-Mar-11 Social media is dead. long live social media roi

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SO WHAT?

22-Mar-11 Social media is dead. long live social media roi

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IT’S DEJA VU

22-Mar-11 Social media is dead. long live social media roi

Our    compe>tors  have  a  FB  Page  

Let’s  go    Social  too  

Has  Legal    seen  this?  

Is  this  Working?  

Let’s  put  our  TVCs  on  YouTube!    

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THE LONG STORY / SHORT

22-Mar-11 Social media is dead. long live social media roi

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THE LONG STORY / SHORT

22-Mar-11 Social media is dead. long live social media roi

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10:00 AM @ OFFICE THE SCENE / BOSS IS ENTERING THE OFFICE BOSS / SEES HIS SECRETARY SURFING IN FACEBOOK

22-Mar-11 Social media is dead. long live social media roi

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THE DIALOG

22-Mar-11 Social media is dead. long live social media roi

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BOSS / HOW MANY FRIENDS DO YOU HAVE?

22-Mar-11 Social media is dead. long live social media roi

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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOSS

22-Mar-11 Social media is dead. long live social media roi

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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOOS BOSS / WOWW! OUR COMPETITORS HAVE ONLY 999! BOSS / HOW LONG DID THIS TAKE?

22-Mar-11 Social media is dead. long live social media roi

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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOOS BOSS / WOWW! OUR COMPETITORS HAVE ONLY 999! BOSS / HOW LONG DID THIS TAKE? SECRETARY / ONLY ONE MONTH MY BOSS!

22-Mar-11 Social media is dead. long live social media roi

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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOOS BOSS / WOWW! OUR COMPETITORS HAVE ONLY 999! BOSS / HOW LONG DID THIS TAKE? SECRETARY / ONLY ONE MONTH MY BOSS! BOSS / CAN YOU CREATE AND RUN OUR CO’S PAGE?

22-Mar-11 Social media is dead. long live social media roi

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BOSS / HOW MANY FRIENDS DO YOU HAVE? SECRETARY / 4.999 MY BOOS BOSS / WOWW! OUR COMPETITORS HAVE ONLY 999! BOSS / HOW LONG DID THIS TAKE? SECRETARY / ONLY ONE MONTH MY BOSS! BOSS / CAN YOU CREATE AND RUN OUR CO’S PAGE? SECRETARY / YES MY BOSS! GIVE ME 5 MINUTES.

22-Mar-11 Social media is dead. long live social media roi

the time it takes !to start your FB Page!

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BUT HE HADN’T SEEN HER PERSONAL PAGE..

22-Mar-11 Social media is dead. long live social media roi

Her  sexy  photos  from    her  latest  vaca2ons  

97%  “hungry”  men  18-­‐35  

content  

audience  

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THE RESULT

22-Mar-11 Social media is dead. long live social media roi

a+er  6  months  

xplain.co 22-Mar-11 Social media is dead. long live social media roi

555 FANS/LIKERS

Bla,  Bla,  Bla,  Bla  Bla,  Bla,  Bla  

Who  Knows?  Who  Cares?  

content   audience  

xplain.co 22-Mar-11 Social media is dead. long live social media roi

facebook?  my  ass  

NEXT TIME MARKETING MANAGER ASKED HIS BOSS TO INVEST €€€€ ON FACEBOOK MARKETING

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INVEST?

22-Mar-11 Social media is dead. long live social media roi

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INVESTMENT MEANS

22-Mar-11 Social media is dead. long live social media roi

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€$¥ 22-Mar-11 Social media is dead. long live social media roi

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ROI 22-Mar-11 Social media is dead. long live social media roi

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WHAT DOES IT MEAN ROI?

22-Mar-11 Social media is dead. long live social media roi

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RETURN ON INVESTMENT

22-Mar-11 Social media is dead. long live social media roi

ROI  =  [GAIN  FROM  INVESTMENT  –  COST  OF  INVESTMENT]  /COST  OF  INVESTMENT    

the formula!

it’s  recession  >me  

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THE BASIC RULES OF ROI

22-Mar-11 Social media is dead. long live social media roi

xplain.co 22-Mar-11 Social media is dead. long live social media roi

RULE#1 ROI IS A BUSINESS METRIC, NOT A MEDIA METRIC. RULE #2 ROI IS 100% MEDIA-AGNOSTIC. RULE #3 THE VALUES USED IN THE ROI EQUATION ARE NONVARIABLE.

xplain.co 22-Mar-11 Social media is dead. long live social media roi

RULE#4 ROI STANDS FOR RETURN ON INVESTMENT. PERIOD. RULE #5 EVERY RESOURCE YOU ASSIGN TO A PROJECT HAS A VALUE. RULE #6 ROI CAN ONLY CALCULATED AFTER THE INVESTMENT HAS YIELD A RETURN.

xplain.co 22-Mar-11 Social media is dead. long live social media roi

ROI IS BUSINESS MEASUREMENT, NOT ALCHEMY. IF YOUR EQUATION SHOWS A COST VALUE IN EUROS AND A GAIN VALUE EXPRESSED IN FACEBOOK LIKERS, YOU’RE IN TROUBLE.

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SOCIAL MEDIA IS NOT FREE

22-Mar-11 Social media is dead. long live social media roi

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EVERYTHING YOU PUT INTO A SOCIAL MEDIA PROGRAM HAS A COST ATTACHED TO IT

22-Mar-11 Social media is dead. long live social media roi

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INCLUDING SOCIAL MEDIA TO THE P&L

22-Mar-11 Social media is dead. long live social media roi

WTF?  

xplain.co 22-Mar-11 Social media is dead. long live social media roi

THE INVESTMENT-RETURN RELATIONSHIP

INVESTMENT   ACTION   REACTION   NONFINANCIAL  IMPACT  

FINANCIAL  IMPACT  

€€€€   €€€€  

THIS  IS  VERY  IMPORTANT,  BUT  ROI  DOESN’T  LIVE  HERE.  

xplain.co 22-Mar-11 Social media is dead. long live social media roi

INVESTMENT   ACTION   REACTION   NONFINANCIAL  IMPACT  

FINANCIAL  IMPACT  

€€€€   €€€€  

WELCOME TO ROI WORLD

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DARE TO CONNECT THEM?

22-Mar-11 Social media is dead. long live social media roi

What  is  the  unit  of  measure  [the  currency  in  other  words]  of  inspira>on?  How  about  Innova>on?  Rela>onships,  even?    

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THE MAGIC WORD HERE IS:

22-Mar-11 Social media is dead. long live social media roi

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CORRELATION

22-Mar-11 Social media is dead. long live social media roi

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IS THERE AN EASY WAY?

22-Mar-11 Social media is dead. long live social media roi

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YES 22-Mar-11 Social media is dead. long live social media roi

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FIRST THINGS FIRST

22-Mar-11 Social media is dead. long live social media roi

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#1 ESTABLISH A BASELINE

22-Mar-11 Social media is dead. long live social media roi

Trend:  10%  Growth  

Start  of  Ac>vity  Start  of  SM  Program  Start  of  Campaign  Start  of  Measurement  

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#2 CREATE ACTIVITY TIMELINE

22-Mar-11 Social media is dead. long live social media roi

   1   2   3   4   5   6   7   8   9   10   11   12  

1st  Month   2nd  Month   ...  

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#3 MONITOR THE VOLUME OF MENTIONS

22-Mar-11 Social media is dead. long live social media roi

   1   2   3   4   5   6   7   8   9   10   11   12  

Months  

Nega>ve  Men>ons  

Posi>ve  Men>ons  

Overall  Men

>ons  

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#4 MEASURE TRANSACTIONAL FORERUNNERS

22-Mar-11 Social media is dead. long live social media roi

WHAT  YOU  CAN  MEASURE  

WHAT  YOU  SHOULD  MEASURE  

MEASURE    HERE  

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#5 LOOK AT TRANSACTIONAL DATA

22-Mar-11 Social media is dead. long live social media roi

Sales  Revenue  

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#5 LOOK AT TRANSACTIONAL DATA

22-Mar-11 Social media is dead. long live social media roi

Transac>ng  Customers  

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#6 OVERLAY ALL YOUR DATA [STEPS 1-5] ONTO A SINGLE TIMELINE

22-Mar-11 Social media is dead. long live social media roi

0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan

ACTIVITIES  

0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan SO

CIAL

 DAT

A  

0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan

TRAN

SACT

IONS  

0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan

WEB

 DAT

A  

0 20 40 60 80

100 120 140 160

Jan Apr Jul Oct Jan LOYA

LTY  METRICS  

AND  MORE...  

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#7 LOOK FOR PATTERNS

22-Mar-11 Social media is dead. long live social media roi

0

20

40

60

80

100

120

140

160

Jan Apr Jul Oct Jan

CORR

ELAT

IONS  

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#8 PROVE & DISPROVE RELATIONSHIPS

22-Mar-11 Social media is dead. long live social media roi

0

20

40

60

80

100

120

140

160

Jan Apr Jul Oct Jan

CORR

ELAT

IONS  

Why?  Why  Not?  

How  this  group  was  touched  by  SM  or  WoM?  

xplain.co 22-Mar-11 Social media is dead. long live social media roi

I NEED A PROVE

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GENERAL MILLS

22-Mar-11 Social media is dead. long live social media roi

DAVID  WITT  Senior  Manager,    Brand  Public  Rela2ons,  General  Mills  

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WHAT WILL HAPPEN IF YOU DON’T NOT CARE ABOUT ROI?

22-Mar-11 Social media is dead. long live social media roi

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RETURN ON IGNORANCE

22-Mar-11 Social media is dead. long live social media roi

it’s  advocates  >me  

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IGNORANCE : BRAND’S DEATH

22-Mar-11 Social media is dead. long live social media roi

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THANK YOU!

22-Mar-11 Social media is dead. long live social media roi

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LEARN MORE

22-Mar-11 Social media is dead. long live social media roi

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CONTACT US IF YOU CARE ABOUT YOUR SOCIAL MEDIA ROI +30  210  6395234    

Thanks  for  the  inspira>on:  James  Belasco,  Oliver  Blanchard,  Alexander  Osterwalder          

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karagos@xplain.co