Proximity BBDO Sweden presents: Digital Day 2011, Feb 10. NICK ORSMAN ROI and Social Media -- why are companies investing in social media, how do companies measure their investment and what are some of the best examples of using social media to meet marketing objectives. The presentation can be seen: http://www.youtube.com/watch?v=Z9TBeCVjReM Get to know Proximity BBDO Sweden here: http://www.facebook.com/ProximityBBDOSweden http://www.proximity.se

1. ROI + Social Media
Digital Conference
10th February, 2011
v0.01 NM

3. What I’m going to cover
1. How confident are we at
measuring social
media?
2. Why is it difficult?
3. What should you
measure?
4. Some examples
5. Recommendations

4. Almost a third of companies in the US
expect to increase their SM spend in 2011
compared to 8% decreasing

5. Forrester
4.5

6. How confident are we?
Belgian study How capable do we feel at measuring the
results of
100 marketers
• Online Direct Response
• Online Branding
• Social Media

7. Results
Capacity of your company to measure online activities
0 <beginner> 1 <advanced> 2 <expert> 3
Online branding 1.05
Direct response 1.29
Social media 0.85

8. What’s the problem?

9. Common questions
....friends should we have on Twitter?
....Tweets should we make per week?
How ....updates to the Facebook page do
many we need?
....should ‘Like’ our Facebook page?
....video views on YouTube mean
success?

11. RNLI – UK based charity set about targeting youth. Identified 12
UK vloggers to be the spokespeople of that generation and
challenged them to be curious about the values it stands for.

12. Results
Their videos sparked 1 million views, 8000 texts and 150 videos,
featured twice by YouTube editors and ranked ‘most-viewed this
month’ in 7 countries. Reached 11% of 15–20 year olds with
just 12 DM packs
Social Media Online TV
Display
Views 733,000 733,000 733,000
Cost £104,000 £416,093 £736,772
Cost per view £0.14 £0.57 £1.10

13. Language is important
Don’t set false ROI is a well understood financial
calculation
expectations
ROI = Profit – Investment/ Investment
COO/CFO will not be content when
results are conveyed as retweets,
sentiment or number of followers

14. Consider grouping all SM metrics
into 4 areas
QUANTITY
User Reach Volume of
Participation
How far and wide do How many users are
your messages spread? interacting with your efforts?
USERS Social Platform USAGE
What’s the strength and
How do your social
depth of user interactions
efforts change opinions
with your social
or intentions?
initiatives?
User Impact Quality of
Participation
QUALITY

15. The most powerful form of marketing
Word of mouth “equity index” formula
Volume x impact
volume = number of messages
impact = Where+What+Who+Source

16. The 4 ‘i’s for measuring engagement
Involvement Interaction Intimacy Influence
What to track What to track What to track What to track
 Brand awareness  Purchase in-store  Sentiment tracking  Net Promoter (NP)
 Site visits and online on third-party sites score
 Time spent  Open rate (blogs,reviews,  Product/service
 Pages viewed  Click through forums, etc.) satisfaction ratings
 Search keywords  Registration  Sentiment tracking  Brand affinity and
 Navigation paths  Coupon downloads of internal customer loyalty
 Site logins  Sample requests contributions  Content forwarded
 Physical store visits  Coupon redemption  Opinions expressed to friends
 Ad impressions  Survey completion in customer service  Posts on high-profile
 Use of application – calls blogs
social / iphone  Volume of
conversation

17. Benchmarking

18. Four perspectives of a social media
marketing scorecard (Forrester, 2010)

19. Improved promotion response rates
with social-enabled commerce.
eCommerce-
enabled news
feed posts on
Facebook drive
18.4 times more
sales per
impression
than Web site
links posted in
news feeds.

20. Cost reduction
Channel Voice
community reduced
F2F events by half
decreasing the
number of customer
conferences it holds,
saving upwards of
$500,000 for each

21. Use consumer surveys to measure
the brand perspective
Secret
deodorant
works better
than other
deodorants
increased 8
points and
purchase
intent jumped
11%.

22. Protecting brand reputation

23. Customer insight

24. Client assignments
Chewing gum and oral care
Brief: Explore the differences
between consumers in Germany,
Russia and the UK in their attitudes
towards chewing gum and looking
after their teeth
Cold sores
Brief: What are consumers saying
about cold sores? Symptoms vs
treatments; Seekers vs Providers;
Creams vs Patches; Where are
conversations happening and how
might the brand join in?

25. Recommendations
• Don’t invest without some clear objectives
• Link objectives to outcomes
• Consider a balanced scorecard
• Use “ROI” when you mean it
• Long term not short term
• SM is a state of mind not another channel

26. Tack sa mycket!