Chris Treadaway from Polygraph Media discusses how marketers should tackle social marketing measurement, analytics, and the ROI question.

1. The Road to Social
ROI: Measurement,
KPIs and “Return”
Presented By
Chris Treadaway (@ctreada)
October 19, 2012
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2. Introduction
Chris Treadaway
Founder & CEO of Polygraph Media
Facebook Marketing analytics & ROI
product – v2 release November 2012
Have assessed over 120,000 Facebook
Pages & counting
Services help companies with social
measurement, KPIs, studies, etc.
Co-author of two editions of Facebook
Marketing An Hour a Day with Mari Smith
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3. A Brief History of Social
2007-2009 Age of Wonderment
Social channel is new experience for customers, marketers
Experimentation -- anything goes
Basic rules of Engagement created
2010-2012 Picks & Axes
Excitement wears off
Scale becomes foremost concern
Tools created to enforce best practices, policies
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4. 2013 & beyond – Rationalization
Slower growth for key, maturing
social platforms
Maturing social platforms = more
complicated to “get exposure”,
more “pay to play”
Integration into the broader
marketing mix, alongside Web,
search, e-mail – metrics will
converge
More pressure to perform
“The Post Social Era”
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5. Facebook & Else
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6. Social a Viable Channel
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7. Debate
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8. Debate
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9. Debate
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10. What We Do Know about ROI
Marketers want it
Executives are
demanding it
Marketers struggle with
measurement, much less
effectively calculating &
proving ROI
Marketers have
ALWAYS struggled
with it
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11. The Business Problem
Make social data & measurement truly useful and actionable
Tie data to meaningful, real-life business metrics where you
can
Grow revenues and profits using the social channel for
“transactional” businesses
Deliver relevant comparisons across social & real life
impressions for “brands”
Move from IDEAS to ENGAGEMENT to $$$ value
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12. Action, Measurement, KPIs, ROI
Adjustment
How We Get Better
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13. 4 Stages of Measurement
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14. Stage 1 – Rainbows & Unicorns
Talk about social in qualitative, descriptive terms
Ideas, concepts, “right-brain” dominant
Know what to do, but not necessarily why from a KPI
perspective
Little/no assessment of time trending performance
beyond Fan Count
Little/no understanding of Facebook Insights
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15. Stage 2 – Awareness
Unafraid of discussing “numbers” with superiors, clients,
etc.
Can combine creative concepts and apply content
strategy with an understanding of KPIs and basic data
analysis skills
Mix of “right-brain” and “left-brain” approaches to
problem solving
Uses Facebook Insights and other basic measurement
tools, but may seek additional clarity
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16. Stage 3 – Data Geek
Extremely comfortable with social metrics, likely some
knowledge of web site metrics & concepts
Combines the two as needed -- experimentation with
URL shorteners and possibly Google Analytics/Overture
to understand click behavior, customer funnel, friction
points
Firm grasp on Facebook Insights, aware of strengths &
weaknesses, likely has downloaded XLS export from
Facebook and has manipulated data
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17. Stage 4 – Data Scientist
Knowledge of metrics, KPIs, and best practices for measurement
and management of most/all digital marketing activities
Regularly conducts a/b and multivariate tests – and can do so on
Web, social, e-mail, and mobile (if applicable)
Responds best to custom dashboards and has likely built his/her own
Regularly conducts correlation and regression analyses to conduct
data driven customer profiling and to optimize marketing efforts
Develops his/her own KPIs and is a “go-to” person
Seeks alternatives to Facebook Insights
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18. Poll
What are you? Tweet it out!!
“Rainbows & Unicorns”
Data Literate
Data Geek
Data Scientist
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19. Facebook Insights
Facebook statistics available to Page administrators,
most frequently used tool – and it’s FREE!
Good directional metrics – a starting point
Demographic rollups (M/F, age, geography)
Like sources
Who is Talking About your page
Check-ins detail
http://ads.ak.facebook.com/ads/FacebookAds/Page_Insights_en
-- Detailed Guide -- 15 pages
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20. Insights Example
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21. Demographics
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22. Download Insights Data
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23. Weaknesses of Facebook Insights
Not real-time – updates 2 days after the fact
No competitive data or benchmarks
Does not specifically tell marketers about effectiveness
of posting strategy, promotions or clicks to Web sites
Not connected to Facebook Ads system – causing “data
silos”
Talking About, Reach, other metrics hard to understand,
and hard for marketers to know how to improve
Extra work needed to massage into effective KPIs
Vendors/startups fill in the gaps
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24. Setting Key Performance
Indicators
Key Performance Indicators (KPIs) are used by many
brands to measure the effectiveness of their marketing
activities
Determine bonuses, raises, promotions, etc.
Some advanced businesses will set KPIs with
social/creative agencies, consultants and hold them to a
high standard
It’s coming!!
Best when aligned to business objective
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25. Key Performance Indicator Tips
SMART
Specific
Measurable
Actionable
Realistic
Timescaled
Make sure people understand their role & responsibilities
in improving each KPI
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26. Most Common Problem with Bad
KPIs
They’re designed to make people behave the right way,
but all too often end up creating the wrong incentives for
employees
Don’t effectively measure things marketer can control
through social or web marketing execution
Metrics I’d avoid
Fans (as a single KPI)
Reach
People Talking About
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27. Sample Good Metrics for KPIs
# of Fans
Talking About
Were Here
Fans Added By Week
Comments
By Month
Likes
Shares By Quarter
Posts By Year
Posts/Day
Since Changing Strategy
Activity/Fan
Activity/Post Since Running Ad Campaign
Comments, Shares, Likes per Fan Since New Agency/Consultant
Comments, Shares, Likes per Post Since Hiring New Community
Manager
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28. Simple Annual KPI Example
Fans
Increase Fans by 37% without spending money on
Facebook Ads
Posting
Post 1x/day to Page, 10% videos, 25 % photos min
1.5 posts/day on weekends
Reach
Average 5.2 comments/post, 11.7 likes/post or greater
Overtake 2 competitors in Fan count
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29. A Perspective on ROI 
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30. ROI Definition
Return – What you get Investment – What you spend
Fans/”Page Likes” $ on people – employees,
Impressions consultants
Affinity & Influence Content production costs
Feedback (comments, Ad spend
likes, tweets, etc.) Technology investments
Virality (sharing) Time
Clicks Opportunity Costs
Direct Conversions
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31. Equating Social to $$$
Valuation approaches
Per Fan
Media Value (branding)
Transactional
Lead Generation
Industry or Scenario Specific
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32. Estimates of Fan Value
Vitrue Replacement Media Value - $3.60/fan
Social Code
Reduced CPA Value - $9.56
Reduced Customer Acquisition Value - $28.98 40x
difference
Syncapse
Incremental Value - $71.84
Absolute Value - $136.38
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33. Estimate of Social Feedback Value
Eventbrite - Value of Facebook
Share for events - $2.52
Imbue Marketing – Value of
Facebook Share - $14.00
Edgerank Checker estimates that
comments are worth approximately
4.7x “content likes”
No known studies tied to Reach<
Talking About
Is your head spinning yet?
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34. Do Your Own Valuation Analysis
Cost Savings
vs. other Customer Acquisition
The Answer
Replacement Conversion or
Media Value “Per Action” metrics
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35. Whole Foods Example
Collect Data
Fans, Comments,
Likes, Shares,
Comment Likes,
Posts
Other inputs
Set Assumptions on
Visibility from Fans,
Friends of Fans
Crunch Numbers
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36. The Other Half of ROI -
Investment
$ on people – employees, consultants
Time, Salary Allocation
Content production costs
Ad spend
Technology investments
Opportunity Costs
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37. Finishing Off the ROI Calculation
Make sure you have a relevant time frame and that it
maps to the “Return” part of the equation.
Subtract value from costs to get the absolute return
Divide return by investment and subtract 1 to get the %
ROI
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38. Hypothetical Example
Whole Foods “return” was assumed to be $9 million
They spent $4.5 million on developing the Facebook
Page
Return = $4.5 million
ROI % = (9/4.5) -1 = 100%
Same analysis can be done for Ads, smaller campaigns –
not just Pages.
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39. Where is this all going?
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40. Where This All is Headed
No longer enough to simply “do the job”
Know the value of your Facebook Marketing work
What is the value of a Post? What do you lose by not
Posting?
For your business & “category”, what is the value of a
Comment? A Like? A Share?
What are you spending on Facebook Marketing, and
does it suggest that you should invest more/less
time/money/effort/expertise?
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41. Where You Want to Be
Know what you should be doing more & less
Should I post more often? Less often?
How specifically can I improve my editorial
calendar?
What do my customers want and how can I satisfy
them?
Should I invest in video? Podcasting? Live events?
How does my approach compare to competitors?
How does all this compare to other marketing
channels?
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42. Thank You!!
E-mail me with your measurement, KPI,
Data Analysis thoughts, feedback, questions
ctreada@polygraphmedia.com
Let’s connect on FB, LinkedIn & Twitter
www.facebook.com/polygraphmedia
www.linkedin.com/in/christreadaway
www.twitter.com/ctreada
Check out our product launch in November
http://www.polygraphscore.com
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