SOCIAL MEDIA IS DEAD LONG LIVE SOCIAL MEDIA ROI

Stefanos Karagos | XPLAIN | March 2011

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DO U HAVE A FB PAGE?

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Social media is dead. long live social media roi

22-Mar-11

A TWITTER PAGE?

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Social media is dead. long live social media roi

22-Mar-11

A SOCIAL MEDIA TEAM?

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22-Mar-11

SO WHAT?

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22-Mar-11

ITS DEJA VU
Our compe>tors have a FB Page Lets go Social too Has Legal seen this? Is this Working? Lets put our TVCs on YouTube!

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THE LONG STORY / SHORT

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THE LONG STORY / SHORT

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

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THE DIALOG

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BOSS / HOW MANY FRIENDS DO YOU HAVE?

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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

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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?

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Social media is dead. long live social media roi

22-Mar-11

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!

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Social media is dead. long live social media roi

22-Mar-11

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 COS PAGE?

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Social media is dead. long live social media roi

22-Mar-11

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 COS PAGE? SECRETARY / YES MY BOSS! GIVE ME 5 MINUTES.
the time it takes ! to start your FB Page!
xplain.co Social media is dead. long live social media roi 22-Mar-11

BUT HE HADNT SEEN HER PERSONAL PAGE..

content
Her sexy photos from her latest vaca2ons

audience
97% hungry men 18-35

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22-Mar-11

a+er 6 months

THE RESULT

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22-Mar-11

555 FANS/LIKERS
content
Bla, Bla, Bla, Bla Bla, Bla, Bla

audience
Who Knows? Who Cares?

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22-Mar-11

facebook? my ass

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

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INVEST?

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INVESTMENT MEANS

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$
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ROI
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WHAT DOES IT MEAN ROI?

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its recession >me

RETURN ON INVESTMENT
the formula!

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

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22-Mar-11

THE BASIC RULES OF ROI

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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.

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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.

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22-Mar-11

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

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SOCIAL MEDIA IS NOT FREE

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22-Mar-11

EVERYTHING YOU PUT INTO A SOCIAL MEDIA PROGRAM HAS A COST ATTACHED TO IT
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INCLUDING SOCIAL MEDIA TO THE P&L

WTF?
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INVESTMENT ACTION REACTION NONFINANCIAL IMPACT

FINANCIAL IMPACT

THIS IS VERY IMPORTANT, BUT ROI DOESNT LIVE HERE.

THE INVESTMENT-RETURN RELATIONSHIP

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


INVESTMENT ACTION REACTION NONFINANCIAL IMPACT

FINANCIAL IMPACT

WELCOME TO ROI WORLD

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DARE TO CONNECT THEM?

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:

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CORRELATION
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IS THERE AN EASY WAY?

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

FIRST THINGS FIRST

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#1 ESTABLISH A BASELINE
Start of Ac>vity Start of SM Program Start of Campaign Start of Measurement

Trend: 10% Growth

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#2 CREATE ACTIVITY TIMELINE

10

11

12

1st Month

2nd Month

...

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#3 MONITOR THE VOLUME OF MENTIONS

Posi>ve Men>ons

Nega>ve Men>ons
1 2 3 4 5 6 7 8 9 10 11 12

Months

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Overall Men>ons

#4 MEASURE TRANSACTIONAL FORERUNNERS

WHAT YOU CAN MEASURE

MEASURE HERE

WHAT YOU SHOULD MEASURE

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#5 LOOK AT TRANSACTIONAL DATA

Sales Revenue

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#5 LOOK AT TRANSACTIONAL DATA

Transac>ng Customers

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

SOCIAL DATA
160 140 120 100 80 60 40 20 0 Jan Apr Jul Oct Jan 160 140 120 100 80 60 40 20 0 Jan Apr Jul Oct Jan

WEB DATA

ACTIVITIES

160 140 120 100 80 60 40 20 0 Jan Apr Jul Oct Jan

TRANSACTIONS

160 140 120 100 80 60 40 20 0 Jan Apr Jul Oct Jan

LOYALTY METRICS

160 140 120 100 80 60 40 20 0 Jan Apr Jul Oct Jan

AND MORE...

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#7 LOOK FOR PATTERNS

CORRELATIONS
160 140 120

100

80

60

40

20

0 Jan Apr Jul Oct Jan

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#8 PROVE & DISPROVE RELATIONSHIPS

CORRELATIONS
160 140

Why? Why Not?

120

100

80

60

40

20

How this group was touched by SM or WoM?

Jan Apr Jul Oct Jan

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22-Mar-11

I NEED A PROVE
xplain.co Social media is dead. long live social media roi 22-Mar-11

GENERAL MILLS

DAVID WITT

Senior Manager, Brand Public Rela2ons, General Mills

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22-Mar-11

WHAT WILL HAPPEN IF YOU DONT NOT CARE ABOUT ROI?

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its advocates >me

RETURN ON IGNORANCE

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IGNORANCE :

BRANDS DEATH
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THANK YOU!

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22-Mar-11

LEARN MORE

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22-Mar-11

CONTACT US IF YOU CARE ABOUT YOUR SOCIAL MEDIA ROI

+30 210 6395234

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karagos@xplain.co

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