DigitalDealer9 SocialMediaROI v1

Measuring Performance and Tracking
ROI from Social Media Marketing and

Reputation Management Session #304
“How to overcome social media gurus that respond to ROI questions
by dancing around objective measurement criteria and ROI analysis of
social media marketing and reputation management initiatives…”
“In this session Ralph Paglia debunks many of the commonly cited
fallacies surrounding social media by showing participants how to apply
innovative new measurement and tracking tools that can eliminate
mysteries surrounding exciting new revenue opportunities and cost
efficiencies provided by leveraging social media marketing and Internet
reputation management. A never-ending supply of new social media apps
empower the consumer onslaught from user generated content (UGC)
sites such as Facebook, YouTube, Twitter, DealerRater and hundreds of
others. Yet there has been very little clarity in supplying dealers with apps
or tools that accurately track and measure results from various spins on
social media made during each new pitch for the dealer's dollars. Much
like the 18th century question, "How many angels can dance on the head
of a pin?" many social media pundits have "danced" around dealer
inquiries concerning ROI measurement or analysis…
Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 1
Introduction and Background:
www.ADPsocial.com
Ralph Paglia
Director - Digital Marketing
Dealer Services
• Currently leading build-out and development of new
ADP/ASU Joint Venture at www.SkySongCenter.com
in Scottsdale, AZ for new home of expanded ADP/BZ
Social Media Reputation Management Team providing
“Strategic Implementation” of Fully Managed Solutions for Dealers...
• Generated 144,000+ leads in 22 months while working for Courtesy Chevrolet…
• Managed Courtesy Chevy Internet Sales team that sold 4,000+ Units in 2006…
• Worked w/Ford in 2007-2009 to develop first fully integrated multi-publisher
Tier 3 Digital Marketing Consulting and Co-Op supported Advertising program…
• Ran 1st retail automotive Behavioral Targeting Digital Advertising program…
• Internet Sales & Marketing Consultant to Ford, Mercedes-Benz, GM,
Honda, Toyota, Mercedes-Benz, Hyundai and 250+ dealers & groups…
• Pioneered development of “Internet Leads” in 1988 using CompuServe ISP access to
post new and used vehicle listings on defense contractor BBS’s in San Diego, CA…
Cell:
Ralph 505.301.6369 www.RalphPaglia.com
Conference – www.SocialAutoSales.com
ralph_paglia@adp.com
Paglia; 9th Digital Dealer 2
Join the social media revolution!

First things First – What About Return on Investment?
ADP has Verified Five Return On Investment (ROI)

Areas of Opportunity for Dealers who Implement a
Social Media Reputation Management Strategy
“Do not confuse the ability to track and measure results

with whether or not it generates a Return On Investment…
Your ROI is realized whether or not you have the ability to

correctly measure the results!”
–- Red McCombs
(FACTOID: McCombs is #1 financially successful car dealer in history)
Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com

4 4
Return On Investment (ROI):
A performance measure used to evaluate the efficiency of an investment or to
compare the efficiency of a number of different investments. To calculate ROI,
the benefit (return) of an investment is divided by the cost of the investment;
the result is expressed as a percentage or a ratio.
Keep in mind that the calculation for return on investment and, therefore the
definition, can be modified to suit the situation -it all depends on what you
include as returns and costs. The definition of the term in the broadest sense
just attempts to measure the profitability of an investment and, as such, there
is no one “right” calculation.
For example, a marketer may compare two different products by dividing
the revenue that each product has generated by its respective marketing
expenses. A financial analyst, however, may compare the same two products
using an entirely different ROI calculation, perhaps by dividing the net income
of an investment by the total value of all resources that have been employed to
make and sell the product.
This flexibility has a downside, as ROI calculations can be easily manipulated to
suit the user’s purposes, and the result can be expressed in many different
ways. When using this metric, make sure you understand what inputs are
being used.

Social Media:
Social Media is media designed to be disseminated through social
interaction, created using highly accessible and scalable
publishing techniques. Social media uses Internet and web-based
technologies to transform broadcast media monologues (one to
many) into social media dialogues (many to many). It supports
the democratization of knowledge and information, transforming
people from content consumers into content producers.
Andreas Kaplan and Michael Haenlein define social media as “a
group of Internet-based applications that build on the ideological
and technological foundations of Web 2.0, and that allow the
creation and exchange of user-generated content. Businesses also
refer to social media as user-generated content (UGC) or
consumer-generated media (CGM).
Social media utilization is believed to be a driving factor in the
idea that the current period in time will be defined as the
Attention Age.
Forrester’s ROI methodology
Benefits
• Quantified value
• Defined metrics
Benefits
(Impact on business) R Total
Cost Costs I Economic
Impact
• People
• Process
(Impact on budget)
S
• Technology Flexibility K
(Options)
“Options” created Uncertainty

• Are there new • Impact of “assumptions”
opportunities in the future?

Examples of Benefits
• Cost savings
• Reduce call volume
• Reduce email volume
• Increase BDC productivity
• Increase in FCR
Benefits • Reduce SEO costs
(Impact on business) • Profit Improvements
– Increase customer lifetime value
– Increase Sales Ideation
– Increase Lead Conversion Rates
Source:
May, 2009 “The ROI of Online Customer Communities” Forrester report
There are many benefits of
Online Dealer Communities…
Source: “The ROI of Online Customer Communities” Forrester

-

12
Social Media Results Known = Dealer ROI

1. Marketing Communications: Create and Publish content that attracts
consumers within demographics targeted by social media marketing
strategy. Use Social Apps to engage/interact/convert.
2. Reputation Management:
A. Monitor social web for content posted containing dealership brand.
B. 911 Fast Response Strategy and Process for negative content posted. Notify
dealer POC’s of what was posted, when and by who. Send POC copy,
including response published and actions/due dates required
C. “Social Rewards” strategy for positive posts, comments and mentions
D. Promptly create and post appropriate responses to all dealership mentions so
people see your store cares, pays attention, responds, appreciates
compliments and resolves customer concern issues
3. Traffic Generation: Use anchor text and linked content to drive
targeted traffic from social media sites into dealer’s social assets and
websites, incoming phone calls to social media assigned numbers, use
stories to drive showroom traffic
4. Improve SEO Strategy: Quickly increase the dealership SEO
“footprint” with multiple SERP listings from dealer’s Social Media accounts
and profile subdomains. Back links from hundreds of Social Media sites to
dealer’s eCommerce sites boost authority and rank with search engines.

13
Social Media Marketing Objectives

1. Create and Publish high quality content that attracts
and engages people in demographic categories your
overall dealership marketing programs seek and target
2. Monitor what people are saying about your dealership
and report to key dealership stakeholders on what is
posted, when, where and by who
3. Promptly create and post appropriate responses to all
dealership mentions so people see your store cares,
pays attention, responds, appreciates compliments
and resolves customer concern issues
4. Drive high quality traffic from social media to targeted
destinations defined by dealership’s marketing strategy
5. Improve SEO “footprint” by creating multiple SERP
listings for dealership Social Media accounts

14

History and Correlation
Good ROI analysis almost always requires

accurate historical information (which few
dealers have). Capturing and analyzing historical
data requires time and discipline. It’s easy to cast
aside analytical tasks when everyone is focused on
generating profit. However, you can’t forecast the
future without understanding the past. Historical
data sets a baseline for measuring the “Delta”.
That change can then be measured and compared to
actions that may have caused it. If you can correlate
action to impact, then you can calculate ROI.

Automotive Avenues Internet Sales Leads
Before Investing in Social Media Marketing
2,383
Leads Submitted Annually
(Above the National Average
for metro car dealers of 968)

Automotive Avenues Internet Sales Leads
After Investing in Social Media Marketing
6,340
Leads Submitted Annually
166% Increase
During Worst Economic
Climate in 30 Years!

History and Correlation
In the following example, lead activity appears to correlate
positively with traffic to all the dealer’s blogs. The positive
correlation is indicated by the change from baseline, which
appears to correspond with the upward movement in blog
traffic. Even then, a definitive correlation can’t be established
until other factors are eliminated from consideration, such as a
promotion or a new advertising campaign.
Identifying correlations can be a time-consuming process,

requiring new variables to be introduced independently of
each other so that change can be isolated. However, you
don’t necessarily have to test only one variable at a time. With
split testing, you can try two different experiments, each
targeting a different segment of your customer base.
Does Blog Traffic Lead to Increased
Volume of Internet Sales Leads?
Sales Blog
Leads Visitors

Does a YouTube Video Lead Response
Generate a ROI?
Historic w/$500 coupon w/Video
Sales Leads 100 100 100

Average Gross PVR $1,500 $1,000 $1,500
Closerate 5% 10% 15%
Profit from Units Sold $7,500 $10,000 $22,500
Incremental profit from
Action N/A $2,500 $15,000
Cost of incentive N/A $500 $2,500
ROI N/A 400% 500%
Metrics
Web analytics today deliver unprecedented insight about online interactions.
The basic features of the free Google Analytics service match the capabilities of
products that cost thousands of dollars just a few years ago. Premium services
like Webtrends build in sophisticated behavioral and sentiment analysis and
can track offsite activity such as a prospect’s comments on Twitter or use of a
mobile application. They can even trigger customized e-mails or tweets when a
person’s behavior matches certain predefined patterns.
With all this rich data now available, it’s remarkable how many marketers still
use the basic metrics of traffic and unique visitors to measure success. We’re
not big fans of these measurements; it’s easy to generate spikes of valueless
traffic by posting celebrity photos or top-10 lists, for example. In Chapter XX,
we listed some common metrics you can use and how they relate to different
business goals. We think richer measures such as referring keywords, top
content, bounce rate, average time spent on site, pages-per-visit and content
analysis yield more actionable insight that will only get better.

Metrics
The best way to select relevant metrics is to work backwards. Start with sales trends, match them to
Web activity and look for the metrics that correlate most closely. Those are the metrics that are
most meaningful to you. For example, if an increase in session time spent on site appears to
correlate with registrations for a webcast, then that indicates that webcasts resonate with the
audience.
You also shouldn’t confine metrics to those which can be measured online. One of the most popular
indications of customer satisfaction is the Net Promoter Score (NPS), introduced in 2003 by Fred
Reichheld of Bain & Co. Obtaining an NPS requires asking customers a single question on a 0-to-
10 rating scale: “How likely is it that you would recommend our company to a friend or colleague?”
This simple tactic has been adopted by big B2B companies like General Electric and American
Express as a key performance indicator.
You can also choose to monitor classic metrics that have nothing to do with the Internet. These
include press mentions, speaking invitations and performance on customer satisfaction surveys.
Metrics also vary by objective. For example, the success of a blog set up to generate leads may be
measured by inquiries, time spent on site and to repeat visitors, while one targeted at search
optimization may be evaluated based on keyword rankings and inbound links.
For ROI purposes, though, the choice of metrics is less important than your ability to correlate
behavior to results. In other words, if certain page views are more valuable than others, then an
increase in traffic and session time could be a good starting metric for evaluating ROI. Just be
aware that they are imperfect indicators of visitor engagement.

Metrics
One thing you absolutely need to know, however, is how people reach your site. Unique
URLs are a way to measure that. We’re astonished at how many e-mails we still get
from brand-name companies that don’t make use of this simple tactic, which enables a
marketer to specify a web address that is unique to the e-mail, tweet, wall post or any
other message. Unique URLs use a simple server redirect function to identify the source
of an incoming click. They look like this:
http://mycompany.23.com/public/?q=ulink&fn=Link&ssid=5155. Everything after the
word “public/” is a unique code that tells where the visitor came from.
Unique URLs enable your analytics software to track inbound traffic from each source
separately so you can determine the ROI of each channel. Without unique URLs, visits
are simply classified as “direct traffic,” meaning that the source could be a forwarded e-
mail, bookmark or an address typed into the browser.
A simple example of how you might use this information is to measure traffic to a landing
page and analyze the number of visitors who fill out a registration form according to the
referring source. This would show you, for example, that registration rates are twice as
high from a newsletter as from a tweet. The value of those registrants divided by the cost
of the newsletter is an ROI metric. Unique URLs are also valuable to split testing; you
can try out two different invitation messages in the same email and use a different URL
for each to measure response to each message.

Metrics
PUTTING IT ALL TOGETHER
Let’s apply all the factors we’ve described above to two B2B social marketing scenarios.
First, we’ll compare the ROI of webcasts to white papers. Start with historical data. What
is the conversion rate of webcast viewers versus people who download a white paper?
What is the lifetime value of an average customer? Compare the outputs and divide by
costs to assess ROI:
Let’s assume the following:
•· The average lifetime value of a customer is $50,000 at a 10% profit margin.
1. Average cost of delivering webcast to 100 registered viewers = $3,000

2. Viewers convert at a 2% rate
3. Average cost of delivering white paper to 500 registrants is $10,000
4. Registrants convert at a 1% rate.
Our ROI analysis looks like this:
Webcast White paper
Audience size 100 500
Conversion rate 2% 1%
Lifetime profitability $ 10,000 $ 25,000
Cost of acquisition $ 3,000 $ 10,000
ROI 233% 150%
Lead Generation
Let’s look at one more example in which we use a blog for lead generation. We know that
performance will be slow during the first few quarters until search engine traffic kicks in.
Based upon the experience of others, we believe that lead growth will improve steadily as
traffic builds. We expect to be at 50 leads per month by the end of the first year and 160
per month by the end of the second. Our historical data tells us that a lead is worth $100.
We further estimate our editorial costs at $2,000 per quarter during the first year, doubling
to $4,000 during the second. Here’s our analysis of quarterly and cumulative ROI.
Quarterly Cumulative
Leads Lead value Cost
ROI ROI
Y1-Q1 10 $ 1,000 $ 2,000 -50% -50%
Y1-Q2 25 $ 2,500 $ 2,000 25% -13%
Y1-Q3 35 $ 3,500 $ 2,000 75% 17%
Y1-Q4 50 $ 5,000 $ 2,000 150% 50%
Y2-Q1 75 $ 7,500 $ 4,000 88% 63%
Y2-Q2 100 $ 10,000 $ 4,000 150% 84%
Y2-Q3 130 $ 13,000 $ 4,000 225% 113%
Y2-Q4 160 $ 16,000 $ 4,000 300% 144%

Measuring Intangibles
The trickiest aspect of ROI analysis is accounting for intangibles. These include factors like
customer satisfaction, customer loyalty, brand reputation and market influence. Many social
marketing projects are justified for these reasons but the outputs are never measured, either
because it’s not worth the effort or because the measurements aren’t in place.
In fact, all of these outputs can be measured and have been for years using some of the
following tests:
Value Measurement
Customer Customer surveys; renewal rates; referrals; incremental business;
satisfaction testimonials; Net Promoter Score
Customer loyalty Renewal rates; incremental business, response rates, event
attendance; testimonials; Net Promoter Score
Customer Newsletter subscriptions; online community activity; response rates;
engagement event attendance; testimonials; feedback volume
Reputation Market share research; awareness research; media citations; analyst
research
Market influence Market share research; lift studies; media/social media citations;
speaking invitations; analyst research
Leadership Attitudinal research; growth rate; media citations; copycat competitors

Valuing Twitter Followers
When marketers get up on stage to describe their social marketing successes these days, they invariably refer to
follower and fan totals. On Twitter, follower counts have become a sort of merit badge, despite the fact that
anyone can quickly run up that number by simply auto-following everyone who follows them. There are even paid
services that inflate follower totals.
What is the true value of a Twitter follower? There is no industry standard to calculate that number, but if you
have the right metrics in place, you can do that for your own organization. Here’s how:
Look at the total number of clicks to your site from Twitter in any given month and divide that by the number of
tweets you posted. This gives you the average visits per tweet. Once you have this number in hand, you can look
at the behavior of visitors who arrive from Twitter and compare it to those who find you from other sources. Look
at page views per visit, time spent on site and visitor paths to identify what percentage of Twitter visitors become
leads or customers. Using your standard qualifying metrics, you should be able to determine the average value of
a Twitter visitor.
For example, if 1,000 visitors arrived from Twitter in a given month as a result of 20 tweets, that yields an average
of 50 visits per tweet. If you know that 5% of Twitter visitors register for a download or newsletter, and that the
value of an average registrant is $50, then you can calculate that Twitter delivers $2,500 in business value, or an
average of $125/tweet. If you have 5,000 followers, then you can also calculate that an average follower is worth
2.5 cents.
This formula is overly simplistic, of course. Not all Twitter followers are created equal. If you want to dive deeper
into the mechanics of influence, services likeTweetReach.com and Twinfluence.com can calculate the total
reach of your followers or tweets according to so-called “second-order followers,” or those who follow the people
who follow you. These metrics can also be used to estimate the value of retweets by certain popular members.
This same approach may also be applied to finding the value of Facebook fans, LinkedIn connections,
SlideShare followers and the like.

When it comes to measuring and tracking online and trying to
determine what your return on investment is with social media,
you first need to ask yourself why you want to participate in social
media in the first place. If the answer is to build your brand and
develop a loyal following, then you are in it for the right reasons.
Currency in social media is found in both relationships and
content.

Still, you can't improve what you don't measure. So if your
goal is to measure traffic, sales, or SEO ranking, here are
some free tools that can help:
Google Analytics and Feedburner.com are essential, free tools to
help analyze your company's website or blog traffic, subscriber
count, and keyword optimization, as well as additional trends.
Gr.aiderss.com allows you to enter a feed URL and returns
statistics about its posts. The most popular statistic is based on
how many times they are shared on a variety of social networking
sites.
GetClicky.com shows you every action a visitor makes and offers
a dedicated iPhone version.
Socialmeter.com checks your website's social popularity.
Statsaholic.com compares rankings and other information on up to
three websites at a time.
Webslug.info compares your site's performance to any other site.
Xinureturns.com is great for adding a URL and for receiving a load
of useful statistics ranging from search engine optimization (SEO)
to social bookmarking and more.
Sometrics.com is an analytics site that measures your social
advertising efforts.
Pagealizer.com is a web analytics that actually suggest changes
and optimizations for your pages.
StatsAdvisor.com is another great web analytics that helps you
track both online and offline advertising efforts.

31

What is a Social Media Strategy?

a balanced social media marketing scorecard
will consider and monitor effects across four
perspectives that balance the short- and long-
term implications while looking at direct and
indirect financial implications. These four are:
1. Financial metrics
2. Digital metrics
3. Brand Metrics
4. Risk Management

First of all, ROI is a business metric, not a media metric. Stop
calling measuring social media marketing success a calculation of
“ROI.” It’s not if you’re measuring all of what social media can do.
There’s also a lot of what social media marketing does that isn’t
covered in their reporting mechanism. My own presentation from
the Social Media Success Summit this year outlined five areas of
benefit for a company’s social media marketing efforts and details
how to measure them. They are:
1. Branding and Awareness
2. Building Community
3. Customer Service
4. Research and Development
5. Direct Sales

Click Action Con- Spent Unique Unique Unique
Date Impressions Clicks Rate Actions Rate versions CPC CPM (USD) Impressions Clicks ClickRate
3/1/2010 126,582 27 0.02% 7 0.01% 2 $0.55 $0.12 $14.95 31,580 27 0.09%
3/2/2010 75,434 13 0.02% 3 0.00% 0 $0.53 $0.09 $6.83 21,782 13 0.06%
3/3/2010 56,752 12 0.02% 4 0.01% 1 $0.51 $0.11 $6.16 15,564 11 0.07%
3/4/2010 25,836 7 0.03% 8 0.03% 0 $0.47 $0.13 $3.28 5,594 6 0.11%
3/5/2010 12,526 2 0.02% 2 0.02% 1 $0.49 $0.08 $0.98 2,422 2 0.08%
3/6/2010 20,423 10 0.05% 4 0.02% 1 $0.52 $0.25 $5.15 2,969 10 0.34%
3/7/2010 58,381 23 0.04% 5 0.01% 2 $0.51 $0.20 $11.71 9,873 23 0.23%
3/8/2010 75,586 20 0.03% 13 0.02% 4 $0.49 $0.13 $9.78 14,071 20 0.14%
3/9/2010 58,396 12 0.02% 7 0.01% 1 $0.50 $0.10 $6.04 11,954 12 0.10%
3/10/2010 46,571 16 0.03% 5 0.01% 2 $0.49 $0.17 $7.85 8,875 16 0.18%
3/11/2010 52,103 16 0.03% 6 0.01% 2 $0.52 $0.16 $8.36 10,706 16 0.15%
3/12/2010 53,708 13 0.02% 7 0.01% 7 $0.53 $0.13 $6.83 10,613 13 0.12%
3/13/2010 91,869 26 0.03% 17 0.02% 19 $0.48 $0.14 $12.57 13,386 26 0.19%
3/14/2010 122,625 34 0.03% 17 0.01% 18 $0.50 $0.14 $17.07 16,490 34 0.21%
3/15/2010 76,608 15 0.02% 5 0.01% 6 $0.49 $0.10 $7.37 13,481 14 0.10%
3/16/2010 60,239 16 0.03% 5 0.01% 6 $0.51 $0.14 $8.14 10,984 16 0.15%
3/17/2010 38,640 12 0.03% 5 0.01% 7 $0.52 $0.16 $6.24 8,173 12 0.15%
3/18/2010 38,249 16 0.04% 6 0.02% 7 $0.52 $0.22 $8.25 7,862 16 0.20%
3/19/2010 17,559 7 0.04% 8 0.05% 6 $0.46 $0.18 $3.21 3,892 7 0.18%
3/20/2010 31,187 8 0.03% 4 0.01% 6 $0.49 $0.13 $3.90 6,832 8 0.12%
3/21/2010 124,746 91 0.07% 71 0.06% 75 $0.35 $0.25 $31.75 15,677 87 0.56%
3/22/2010 177,920 129 0.07% 98 0.06% 103 $0.33 $0.24 $42.10 23,459 129 0.55%
3/23/2010 158,400 120 0.08% 77 0.05% 85 $0.31 $0.23 $37.13 20,604 119 0.58%
3/24/2010 156,235 117 0.08% 76 0.05% 89 $0.31 $0.23 $36.10 20,905 114 0.55%
3/25/2010 199,617 105 0.05% 69 0.04% 84 $0.33 $0.17 $34.78 25,985 104 0.40%
3/26/2010 119,699 80 0.07% 49 0.04% 59 $0.34 $0.23 $27.32 18,618 80 0.43%
3/27/2010 102,171 70 0.07% 39 0.04% 58 $0.35 $0.24 $24.15 15,879 70 0.44%
3/28/2010 140,720 87 0.06% 58 0.04% 81 $0.34 $0.21 $29.93 19,178 87 0.45%
3/29/2010 139,643 85 0.06% 54 0.04% 64 $0.35 $0.21 $30.00 19,406 84 0.43%
3/30/2010 125,990 82 0.07% 46 0.04% 60 $0.36 $0.24 $29.87 18,240 80 0.44%
3/31/2010 131,634 74 0.06% 37 0.03% 51 $0.39 $0.22 $28.96 18,110 73 0.40%
4/1/2010 153,820 80 0.05% 39 0.03% 49 $0.38 $0.20 $30.00 19,466 78 0.40%
4/2/2010 147,711 77 0.05% 46 0.03% 49 $0.39 $0.20 $29.87 19,101 77 0.40%
Totals 3,017,580
Ralph Paglia; 1,502Dealer
9th Digital 0.05%Conference – www.SocialAutoSales.com
897 0.03% 36
1,005 $0.38 0.19 $566.63 481,731 1,484 0.31%
How Do You Calculate the ROI of a Blog?
• Domain name/hosting = $20 - $30 per month
• Software = Using WordPress or similar – free ($150 for set up)
• Monthly blogging service = DIY or pay $500 - $5,000 / month
You could hire a designer to put together a sleek design for you and pay anywhere from $500 to
several thousand dollars. You may get what you pay for, but… There is also a time commitment.
How much is your time worth? OK, so what are the benefit? They are legion:
•Increased Search Engine Presence

•Customer Feedback
•Link Ppopularity and PageRank
•Targeted traffic to your website
•Increased sales volume

40

Social Media Case Study: Ancira Auto Group
Birth of a Social Community
1 ADP builds AnciraCommunity.com integrated
w//Facebook, Twitter, Flickr, etc.
3 Dealer Information
Ancira Crafts Their Message
Employees engage discussions
4 Syndicated Content
Ancira personnel & suppliers set-up profiles - Interviews with Civic leaders
Get engaged – Create Content Relevant Info From Other Sources
5 Local Interest
Registration / Publication Highlight Ancira Civic Leadership
2 Site Registered in 120 Social Venues Become local social media leader
Web based console manages all accounts
6 User Content
Fun Stuff For Customers
Road tests, reviews & how to’s
“Canine Romance Blooms…”
Will you be my Facebook friend?

Subscribe to our YouTube channel
Follow Us on Twitter
Case Study: Ancira Auto Group – San Antonio
Social Media Reputation Management Results
Positive “I am absolutely blown away
customer that you not only responded…
feedback but that you use social media”
“Heaters
Become “I will be happy to explain
Raving to everyone the fantastic
Fans” service I received…”
Branded Search
Search ancira dodge san antonio SERP Returns
ancira auto group
Engine ancira chevrolet 10 pages of
Results ancira kia san antonio Ancira Social
Media content
(SERP)
Consumer
Response to
Social Media
Advertising

11,159 People Visited
AnciraCommunity.com
•18,374 Visits
•11,159 Absolute Unique Visitors
•90,715 Pageviews
•4.94 Average Pageviews
•00:04:32 Time on Site
•48.12% Bounce Rate
•60.36% New Visits

What is the Display Advertising Media Equivalent
Value of AnciraCommunity.com Impressions?
•18,374 Visits
•90,715 Pageviews
The aggregate average Cost Per Thousand Impressions
(CPM) for “Automotive Intender” websites geotargeted
within the San Antonio market area is $7.57 CPM…
90,715 Pageviews = 907.15 CPM Units
907.15 x $7.57 = $6,867.13

What is the Google Adwords Pay Per Click (PPC)
Search Advertising Media Equivalent Value?
•18,374 Visits
•90,715 Pageviews
The aggregate average Cost Per Click (CPC) for Google
Adwords campaigns for automotive relevant keywords
geotargeted within San Antonio Metro is $2.64 CPC…
18,374 Community Visits = 18,374 Click Throughs
18,374 Clicks x $2.64 CPC = $48,507.36

What is the comparable Cost Per Unique Visitor
Equivalent Value?
•18,374 Visits
•90,715 Pageviews
The aggregate average Cost Per Unique Visitor (CPUV)
for all other Ancira Auto Group online campaigns focused
on driving traffic to Ancira Web Sites $2.12 CPUV…
11,159 Unique Visitors
X $2.12 CPUV
------------------------------------
$23,657.08
What is the Social Media Aggregate Equivalent
Media Value Average for AnciraCommunity.com
within the time period measured?
$6,867.13 CPM
$48,507.36 PPC
$23,657.08 CPUV
------------------------
(79,031.57 / 3) = $26,343.85

Automotive Avenues Community Google Analytics
(3 weeks of Facebook Advertising Campaign)

(3 weeks of Facebook Advertising Campaign)
ROI Lesson Learned: Facebook Advertising works best when

used to drive traffic to, and promote Facebook Dealer Pages,
Groups and Special Offers hosted within Facebook.com
Automotive Avenues Community Google Analytics

51

Example of ROI Report Generated by Spreadsheet Macros
based on calculated values of Fans, Followers, Subscribers,
Impressions, Click-Throughs, etc.

Pages Avg. Time % New Bounce
Source/Medium Visits /Visit on Site Visits Rate
google / organic 2,947 1.97 20:34 87.51% 74.35%
(direct) / (none) 2,822 2.47 10:18 68.67% 67.33%
apps.facebook.com / referral 1,523 1.11 15:29 95.40% 91.20%
facebook.com / referral 533 2.57 0:54 76.55% 74.30%
autoaves.com / referral 447 2.80 11:16 57.72% 62.64%
yahoo / organic 266 1.67 10:27 90.23% 72.93%
bing / organic 260 1.89 21:47 86.92% 71.15%
googleads.g.doubleclick.net / referral 121 1.28 11:18 95.87% 85.12%
google.com / referral 119 1.52 11:29 97.48% 57.14%
twitter.com / referral 95 5.66 15:24 35.79% 40.00%
search / organic 77 1.65 20:52 85.71% 67.53%
autodigitalmarketing.com / referral 70 1.99 20:13 85.71% 65.71%
youtube.com / referral 57 1.12 14:44 96.49% 91.23%
cli.gs / referral 46 16.50 10:57 0.00% 28.26%
notify.bluecoat.com / referral 40 4.85 9:00 20.00% 45.00%
aol / organic 28 1.36 18:00 96.43% 78.57%
denverssecret.com / referral 23 1.96 21:54 8.70% 56.52%
webmail.aol.com / referral 22 2.14 14:10 95.45% 54.55%
automotive-avenues.com / referral 20 1.65 14:24 95.00% 70.00%
us.mg2.mail.yahoo.com / referral 19 3.42 22:44 73.68% 31.58%
qq829.com / referral 18 1.00 0:00 100.00% 100.00%
webhelp.qwest.net / referral 18 1.33 20:00 94.44% 88.89%
images.google.com / referral 15 3.53 22:24 86.67% 20.00%
dogpile.com / referral 14 1.64 15:25 78.57% 64.29%
linkedin.com / referral 13 2.92 20:18 100.00% 61.54%

qq829.com / referral 18 1.00 0:00 100.00% 100.00%
webhelp.qwest.net / referral 18 1.33 20:00 94.44% 88.89%
images.google.com / referral 15 3.53 22:24 86.67% 20.00%
dogpile.com / referral 14 1.64 15:25 78.57% 64.29%
linkedin.com / referral 13 2.92 20:18 100.00% 61.54%
pagead2.googlesyndication.com / referral 12 1.00 0:00 100.00% 100.00%
search.mywebsearch.com / referral 11 2.18 2:10 72.73% 54.55%
search3.comcast.com / referral 11 1.64 4:21 81.82% 81.82%
google.ca / referral 10 1.40 12:00 90.00% 70.00%
google.co.uk / referral 10 1.20 7:12 100.00% 80.00%
pubads.g.doubleclick.net / referral 9 1.00 0:00 100.00% 100.00%
ask / organic 8 1.13 0:00 100.00% 87.50%
console.mxlogic.com / referral 7 1.00 0:00 85.71% 100.00%
webmail.att.net / referral 7 2.43 0:00 71.43% 28.57%
co123w.col123.mail.live.com / referral 6 1.67 8:00 83.33% 66.67%
sn118w.snt118.mail.live.com / referral 6 1.50 8:00 50.00% 66.67%
google.de / referral 5 1.00 0:00 40.00% 100.00%
ning.com / referral 5 3.40 14:24 100.00% 60.00%
sellingiron.com / referral 5 8.60 9:36 100.00% 0.00%
sz0087.ev.mail.comcast.net / referral 5 7.20 14:24 80.00% 20.00%
twitterfeed / pingfm 5 1.80 14:24 100.00% 40.00%
forums.hipinion.com / referral 4 1.00 0:00 100.00% 100.00%
google.co.in / referral 4 1.25 18:00 100.00% 75.00%
google.com.br / referral 4 1.25 6:00 100.00% 75.00%
swagbucks.com / referral 4 2.75 18:00 100.00% 50.00%
sz0076.ev.mail.comcast.net / referral 4 2.25 18:00 100.00% 0.00%
Ralph
Totals Paglia; 9th Digital Dealer Conference
9,780 – www.SocialAutoSales.com
2.15 3.16 80.60% 52.60% 55
Social Media Marketing – Debunking the ROI Myth
There is a group of professionals who argue that Social Media

ROI can NOT be calculated. And there is an opposing group
that argues the point that Social Media Marketing ROI can, and
must be calculated. This article is based on the blog posts and
argument put forth by Dag Holmboe that Social Media ROI can
be calculated. We will use Holmboe's logic, explanation and
recommended tools to describe and outline several different
ways of calculating the Social Media ROI.

Social Media Marketing:
Measurements to Financial Values for ROI

Social Media Marketing – ROI Categories

First up is Forrester’s Social Media duo Charlene Li and

Jeremiah Owyang. In 2007, Charlene and her team conducted a
study on the ROI of blogging where they saw that it is fairly easy
to calculate the ROI of blogging. They did not calculate a direct
profit based ROI of their blogging campaign. Instead, they
calculated the replacement value and the comparable cost of key
functional objectives achieved with social media to equivalent
advertising, PR and word of mouth marketing if these objectives
would have been achieved using traditional media. They then
transposed the value metrics to the blogging calculations and
compared the cost between traditional media and social media
based on the same values. The value and the cost of traditional
media is well known so based on the same value but difference in
cost, the ROI of blogging can be accurately determined.

Charlene quotes a Social Media Marketing ROI example:

“FastLane has about 100 people commenting on
the blog each month, which is equivalent to
gaining customer insight on products and brands
from a traditional focus group. We estimated that
the value of this was equivalent to running a
focus group every month at the cost of $15,000 a
month, or $180,000 a year. Voila – there’s the
value of the blogging benefit laid out in black and
white.”
The following list supporting Social Media ROI is from Bill
Johnston at Forum One. Bill has compiled a set of publicly
available data that are related to Social Media ROI:
1. Community users remain customers 50% longer than non-
community users. (AT&T, 2007)
2. Community users spend 54% more than non-community
users (EBay, 2008)
3. Community users visit nine times more often than non-
community users (McKinsey, 2005).
4. Community users have four times as many page views as
non-community users (McKinsey, 2005).
5. 56% percent of online community members log in once a
day or more (Annenberg, 2009)

ClickPaglia;
Ralph to Zoom9th Digital Dealer Conference – www.SocialAutoSales.com 63
1
2
3
4
1
2
3
4
1
2
3
4
1
4
1
4
1

1
4
Ralph Paglia; 9 Digital Dealer Conference – www.SocialAutoSales.com
th 70
Ads
Ads were
were seen
seen 7,201,334
7,201,334 times
times in
in October
October by
by
Facebook
Facebook members
members who
who live
live near
near the
the two
two
dealerships
dealerships in
in this
this case
case study…
study…
1,730
1,730 of
of those
those Facebook
Facebook members
members clicked
clicked on
on
one
one the
the two
two dealer
dealer advertisements…
advertisements…
Since
Since we
we spent
spent $1,595.25
$1,595.25 for
for the
the Facebook
Facebook AdAd
Campaigns,
Campaigns, each
each click
click customer
customer visit
visit to
to our
our
community
community site,
site, or
or Fan
Fan page
page cost
cost 92
92 cents.
cents.
To
To show
show Facebook
Facebook members
members our
our dealership
dealership
ads
ads 1,000
1,000 times,
times, itit cost
cost 22
22 cents…
cents…

First 4 Days…

After 30 Days…

After 60 Days…

Listening to What Customers are Saying
About your Dealership in the Social
media World…
How do you do it?

How much does it Cost?
What happens when something is Posted?
What’s the Value to your Dealership?
…How do you Measure the ROI?

Ralph Paglia
ADP Digital Marketing Solutions
ralph_paglia@adp.com
cell: 505-301-6369 www.DigitalRalph.com
Presentation available at:
www.AutomotiveDigitalMarketing.com
or… ADM.fm
1. Join ADM
2. Go to “ADM Forum”
3. Use Search: “Presentation File Exchange”
I want to thank for a great concept...

www.Ralphertising.com

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Measuring Performance and Tracking

ROI from Social Media Marketing and

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 3

ADP has Verified Five Return On Investment (ROI)

“Do not confuse the ability to track and measure results

Your ROI is realized whether or not you have the ability to

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 5

“Options” created Uncertainty

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 7

Source: “The ROI of Online Customer Communities” Forrester

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 10

Social Media Results Known = Dealer ROI

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 12

Social Media Marketing Objectives

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 13

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 14

Good ROI analysis almost always requires

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 15

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 16

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 17

Identifying correlations can be a time-consuming process,

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 19

Historic w/$500 coupon w/Video

Sales Leads 100 100 100

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Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 22

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 23

1. Average cost of delivering webcast to 100 registered viewers = $3,000

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•Increased Search Engine Presence

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Will you be my Facebook friend?

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Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 48

ROI Lesson Learned: Facebook Advertising works best when

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 50

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 51

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 53

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 54

There is a group of professionals who argue that Social Media

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 56

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 58

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 59

First up is Forrester’s Social Media duo Charlene Li and

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 60

Charlene quotes a Social Media Marketing ROI example:

Ralph Paglia; 9th Digital Dealer Conference – www.SocialAutoSales.com 62

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