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How to measure and improve your social media roi

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Organic reach has decreased drastically over the past few years on Facebook. As a result, Marketers invest more time, money and effort to create good content to get higher engagement and boosting their content.

This leads the management or client often questioning: Is my investment in social media really paying off?

Through this guide you will learn:
1. How to measure your social media ROI
2. How you can optimize your adspend through top quality content and better targeting

Publié dans : Données & analyses
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How to measure and improve your social media roi

  1. 1. HOW TO MEASURE & IMPROVE YOUR SOCIAL MEDIA ROI
  2. 2. Organic reach has decreased drastically over the past few years on Facebook THE TYPICAL SITUATION: Marketers invest more time, money and effort to create good content to get higher engagement and boosting their content The management/ client begins to question if social media really helps their business.
  3. 3. YOU’RE NOT ALONE: Here are the top challenges by marketers
  4. 4. HOW DO YOU CALCULATE SOCIAL MEDIA ROI?
  5. 5. THE FORMULA VALUE OF GOALS ACHIEVED COST RETURN ON INVESTMENT 100 COST
  6. 6. 1. What are your objectives of leveraging on social media? 2. What metrics do you use to measure your success against these objectives? Some examples: • Brand awareness: Reach • Building a community: Engagement • Leads: Sign ups; downloads of a whitepaper or ebook STEP 1: SET YOUR GOALS
  7. 7. STEP 2: TRACKING YOUR GOALS • Begin measuring your goal completion based on the metrics you’ve decided upon within your social media platform or your Google Analytics account: Good Read: 4 Google Analytics Goal Types ThatAre Critical To Your Business
  8. 8. STEP 3: CALCULATE YOUR SOCIAL MEDIA INVESTMENT 1. Cost needed to produce content i.e. video production cost; graphic design fee; money spent on talent 2. Labour 3. Ad cost
  9. 9. EXAMPLE 1: YOUR GOAL IS TO INCREASE BRAND AWARENESS SOCIALBAKERS SUITE Review your Paid Content Spend, Paid Content Impressions and CPM – in this example, spend is rising by 63%, whereby Impressions by almost 200% while decreasing the CPM by 45,5% - a proof of a very efficient promotion strategy!
  10. 10. EXAMPLE 2: YOUR GOAL IS TO BUILD A RELATIONSHIP WITH YOUR AUDIENCE And maximizedEngagement since October.. Cutting the budget after August… Resulted into decrease of Cost Per Engagement after October SOCIALBAKERS SUITE
  11. 11. HOW TO IMPROVE YOUR SOCIAL MEDIA ROI?
  12. 12. BACK TO THE FORMULA… COST OF INVESTMENT IN SOCIAL MEDIA RETURN ON INVESTMENT 100 Answer: Focus on optimizing your ad spend on social media VALUE OF GOALS ACHIEVED COST
  13. 13. Every ad is assigned a relevance score after the first 500 Impressions The goal of the Facebook News Feed is to show people the stories that are most relevant to them. 1 10 NEGATIVE FEEDBACK Unfollow,Hide Posts etc. POSITIVE FEEDBACK Engagement,Clicks, Views,Conversions etc.
  14. 14. Ads with a very low Relevance Score have 40x times higher Cost per Click. RELEVANCE AFFECTS CPC OF YOUR AD 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 1 2 3 4 5 6 7 8 9 10 CPC vs Relevance Score Sample: 26,865 Promoted Posts posted by Brand pages, Time range: 01 Jan 2015- 16 June 2016
  15. 15. 1.Your content quality 2.Whether or not you’re targeting the right audience RESOURCE: https://adespresso.com/academy/blog/facebook-ads-cost/ TWO KEY FACTORS AFFECTING THE COST OF YOUR ADS
  16. 16. 1. BETTER CONTENT QUALITY = HIGHER RELEVANCE SCORE Sample: 26,865 Promoted Posts posted by Brand pages, Time range: 01 Jan 2015- 16 June 2016 Median CPC vs. Post Reach Engagement Rate* $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 0-1% 1-2% 2-3% 3-4% 4-5% 5-6% 6-7% 7-8% 8-9% 9-10% Facebook measures ‘quality’ based on number of engagements. The more people engage with your content, the cheaper it becomes to boost it CPC is 14x higher with 1% engaged users than with 5 - 6% engaged users. POOR QUALITY TOP QUALITY
  17. 17. Track repeated engagement as they would tell you whether or not you’re able to retain your audience and which content can retain your audience. Benchmark this against your competitors: Brand Unique likes Repeated likes H&M 72.5% 27.5% Forever 21 58% 42% Zara 57.6% 42.4% Topshop 66.2% 33.8% Uniqlo 62.2% 37.8% Stay on top of the content with attracts the most unique engagers so you can repeat your success. Happy Birthday to the one+only: @llewellyn November 8 2016 3 469 INTERACTIONS 3 422 REACTIONS One of the most inspiring days today onset filming for an upcoming project I can't wait to announce. @katvondbeauty December 18 2016 4 275 INTERACTIONS 4 209 REACTIONS 594 LOYAL LIKERS 475 LOYAL LIKERS SAMPLE DATA ENSURE THAT YOU’RE RETAINING THIS ENGAGEMENT OVERTIME SAMPLE: Socialbakers Audience loyalty report
  18. 18. VERY BROAD TARGETING VS. TARGETING BASED ON GENDER AND INTEREST 2. TARGETING INFLUENCES YOUR RELEVANCE Photo credit: Facebook Targeting: Women, Aged 18–34, Lives in United States, Interested in Fashion Targeting: Men and Women, Aged 18–34, Lives in United States 2/10 8/10
  19. 19. HOW DO YOU ENSURE YOU’RE TARGETING THE RIGHT AUDIENCE? Age Employment Brands she likes About her Socio-demo* 15 – 24 years old High school student, food preparation, services, sales, personal care Coca-cola,Disney,Dr.Pepper, Xbox, PS, Subway She lives with her parents in a middle sized city, is in high school and works part-time in fast-food or at a car wash. She enjoys movies and TV series, although she is not a kid anymore, she likes to come back to some animated series. She’s found herself an adult icons looking up to Kat von D and her cosmetics. Although she watches her favorite celebrity closely, liking almost every post, she can’t buy the products since she doesn’t have the money. Age Relationship status 18-24yo 54% Single 46% 25-34yo 31% In a relationship 31% 35-44yo 11% Engaged 5% 45-54yo 4% Married 19% SAMPLE: Socialbakers Audience Interest Segmentation Report Audience Persona % Cool girl 24,39% Young Mother 19,51% Grown Up Teen 12,2% Celebs & Style 9,76% Don’t target based on age and gender alone. It is too broad. Segment your fans or engagers in Facebook into different groups. Craft a content strategy specific to each of them
  20. 20. BENEFITS OF KNOWING YOUR AUDIENCE SEGMENTS 1. Going beyond gender and age to really understand who is engaging with you online 2. Create content that suits them: Increase your engagement 3. Improve targeting for ads 4. Identifying new partners to work with HOW DO YOU FIND OUT THAT INFORMATION Audience interest segmentation report by Socialbakers SAMPLE DATA: Socialbakers Audience Interest SegmentationReport
  21. 21. SUMMARY To measure social media ROI, you first need to understand your social media objectives and how you would measure your success. The best way to improve your social media ROI is to optimize your ad spend. 1. You would need to produce top quality content to attract engagement 2. Don’t focus one-off engagement. Ensure that you can retain this engager which you spent money to acquire. 3. Target the right audience so you can deliver the appropriate content which engages them
  22. 22. THANK YOU! j er al di ne. phneah@ soci al baker s. com 9 / 2 0 / 2 0 1 6 J E R A L D I N E P H N E A H Regional AccountManager

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