OgilvyInsight I n t e l l e c t u a l c a p i ta l f r o m o g i lv y OCTO B ER 2 0 0 9

Nothing has been more important than developing a credible, workable measurement model for ou
social media-based programs at Ogilvy. Having participated in many of the forums where measure-
ment geeks come together to test-drive their models, it became clear last year that we were all stil
the first third of the process. If you think of the inevitable arc of standards development, the first thir
is floating meaningful measures - no matter how convoluted the model - marketers want to know th
there are valuable metrics that even exist to justify spending in word of mouth-based social media.

First Third of the Social Media Marketing Measurement Life Cycle

Everyone starts with KPIs (key performance indicators) they find compelling. We have 100,000 video
views (over 1 month? 6 months? 1 year?). TheOurreal powerpage
Facebook of social media almost 30,000
has accumulated
fans/friends. Our blog mentions add upmarketing
media to a fat 2m UMVs (unique monthly views). KPIs are often wit
is integrated
out a lot of context. It is safe to say that we are passing through this phase.
into all communications and marketing…
Second Third of the Social Media Marketing Measurement Life Cycle
As critics punch holes - rightly so - in the pure KPI model, academic braniacs develop rigorous
models in response. Walter Carl's work at ChatThreads (previously at Northeastern) seem to fit her
An extremely smart guy, all you have to do is spend a half hour with Walter and you will be convince
about the strength of his process for matchbacks and other techniques that really do ratify the spre
of WOM. You will of course need to hire his company to actually apply the principles. These methods
are persuasive, rigorous yet like the Eniac computer, they may require more effort and shelf space
than most marketing programs can afford. So, we simplify. I am certain Walter is doing the same. T
is the driving pressure behind our modelling at Ogilvy. Conversation Impact was developed to provid
credible and implementable measurement model that could be applied to most projects without a
separate budget allocation. We needed a simple model that made sense to brand marketers. These
simpler models are still in the early stages. It will be at least a year before 2-3 of them emerge as
"leading" contenders. Ours is open to anyone to use and we will see if it gains velocity (presenting n
month at ARF).

Conversation Impact
Meanwhile, brands that explore the more complex and more meaningful measurement models inev
™
table backslide into KPIs. You can hear it now from your most senior brand marketers, "Can't we jus
reduce all this complex modeling to 2-3 numbers we care about most? Numbers that reflect how
much reach or how much time people are spending with the brand. What if we just count video view
and Tweets?"
Ogilvy’s Simple, Results-Driven Social Media
Final Third of the SocialMeasurement Model for
Media Marketing Measurement Life Marketers
Cycle
This remains a glimmer in my eye. Once we have the solid and simple modeling out of the second
third, we need to ramp up quickly for the inevitable: complexity. The real power of social media mar
keting is integrated into all sorts of communications and marketing - ALL sorts. What is the impact
social media mentions on the performance of adjacent advertising - does it make the ads perform 3
 O g i lv y I n s i g h t 1

Track the
Few Metrics
that Really Matter
With two-thirds of the world’s Internet population now visiting a
blog or social networking site, driving results through social media
has become an important component of the marketing strategy.

To help guide brands on social media spending decisions, Ogilvy’s

global social media marketing group, 360° Digital Influence, has
developed and introduced a new business objective-driven model
that provides a quantitative measurement framework for social
media effectiveness—Conversation Impact.

In developing Conversation Impact,

we had Three Key Goals in mind
1. The approach must allow for cross-channel performance comparison,
specifically including the social media “channel”

2. The metrics must include actionable data for in-market

campaign optimization

3. The model must be simple, objective-driven and cost-effective enough to

use for every campaign, social media and “360”/multi-channel

In addition to introducing the model below, the following sections walk through some specific
considerations and objectives we worked through.
2 O g i lv y I n s i g h t

Measure
Cross Channel
De-emphasize metrics that don’t allow apples-to-apples comparisons.

Current approaches to advertising focus on measurement of such items as ad recall, ad reach,

ad frequency, in-category brand aided/unaided recall (for evaluating awareness/consider-
ation), intent to purchase and net promoter surveys (for evaluating preference); and—for
measurable media such as online ads—action/conversion rates (for evaluating action or
conversion).

Traditional metrics are not readily applicable to the analysis of social media—but are still
being used. Reach/exposure (the number of people exposed to the message) is often used as
a metric related to brand awareness, positioning and preference campaigns. However, word of
mouth (WOM) is consistently trusted more than other forms of communication/marketing1,
so direct CPM or impression-based comparisons are not useful.

Another complicating factor is that simply applying an adjustment factor to a WOM mention
is still not useful because of the varying influence levels of the conveyor of the message. That
is, people trust messages differently based on context (which includes factors such as the
person conveying message, tonality of message and specific content of the message).

Finally, simply reporting “activity” metrics like page impressions, interactions and time does
not help marketers determine whether or not a campaign was successful in driving their
ultimate marketing or communication goals. Even measures of “engagement” cannot connect
activity to core marketing goals.

Conversation Impact simplifies and standardizes measurement in a way that is readily recog-
nizable to marketers, while accommodating both conventional and new metrics and data that
account for these differences in social media.

1 eMarketer Bridge Ratings and University of Massachusetts 2007.

 O g i lv y I n s i g h t 3

Provide
Actionable Measurement
that focuses on key goals
There is rich data now available on a continuous basis, including daily data from the semantic
analysis of the millions of conversations in social media. We integrate these analytics into the
model to help drive optimization.

As an example, for a brand positioning campaign, we can evaluate preference and action in ways
that help us understand which social media influencers are adopting which types of messaging
and in which channels. We look at what people voluntarily say and do across the social Web. We
can use this data to help guide ongoing creative and spending decisions.2

Figure 1: Impacting Consumers—Giving or Seeking Advice with Purchases

Do you regularly/occasionally give advice to or seek
advice from others about products or services you
have purchased?2
n Moms n Adults 18+

97.2% 94.9% 93.6% 91.5%

Regularly/Occasionally Give Advice Regularly/Occasionally Seek Advice

2 Source: BIGresearch SIMM 14, June 2009.

4 O g i lv y I n s i g h t

Use a model that’s both

Strategic and Simple
We organized our model directly around three main goal categories that build off years of
“marketing/communications funnel” research into the best way to drive action:

1. Reach & Positioning

2. Preference
3. Action

Table 1 presents the key representative measures within each of these categories.

Some of these metrics are based on data from social media monitoring software; other metrics
are obtained from server logs, Google and other analytics data, and surveys.

Table 1: Conversation Impact Model with Representative Metrics

Metric/Funnel Goal >

Reach & Positioning Awareness Consideration Preference Action Loyalty

UMV – blogs, site, microsite, applications, other,

total #/% change

Volume of online conversation, #/% change, Cost

per Online Conversation Generated (CPICG)

Share of voice in category (=Volume for brand/vol-

ume for category). #/% change, Cost per Increase in
Share of Voice (CPISV)

Search visibility (for relevant key words)

Preference Awareness Consideration Preference Action Loyalty

Sentiment index of online conversation (% posi-

tive–% negative), #/pts change, people reached vs.
all, Cost Per Increase in Sentiment Index (CPISI)

Share of positive voice in category (= brand positive

mentions/category positive mentions), #/% change,
people reached vs. all, Cost per Increase in Share of
Positive Sentiment (CPISP) 3

Relative net promoter score (NPS) in category

(=brand NPS category NPS), #/% change, people
reached vs. all, Cost per Point Increase in NPS
(CPINP)

Action Awareness Consideration Preference Action Loyalty

Registration: RPA, CPA, $, #

Sale: RPA, CPA, $, #

Advocacy: RPA, CPA, $, #

3
Depending on volume and the prevalence of negative discussion, we may look at share of net positive voice,
where net positive voice = brand positive mentions – brand negative mentions 
 O g i lv y I n s i g h t 5

Reach & Positioning

• Share of total voice within category = volume of mentions for brand/total volume of
discussion in category44

• Calculated via social media monitoring/listening software or through a direct

consumer survey

• Cost per point increase in above metric

Preference
• Share of positive voice within category = volume of positive-sentiment mentions for brand/
total volume of positive-sentiment mentions in category

• Can also be compared to/calculated as share of net positive voice, which = volume of (positive –
negative) mentions for brand/total volume of (positive – negative) mentions in category

• Calculated via social media monitoring/listening software or through a direct consumer

survey

• Cost per point increase in above metric

Action
• Campaign- or influencer-attributable actions

• Calculated using tracking analytics or through Ogilvy’s social media activation

platform technology

Note that the measures shown are representative, not comprehensive—the key focus of the
model is to use categories and metrics that provide simple, useful data in ways that provide
for ease of comparability and analysis.

4
The denominator may also be modified to include only the brand plus specific competitors
6 O g i lv y I n s i g h t

Evaluate campaign impact on

consumers,
influencers or both
We used the model to evaluate two example brand campaigns. We selected these two campaigns
to demonstrate the flexibility of the model in measuring impact on both consumers and
influencers. For the purposes of this discussion, “consumer” represents traditional end users/
target audience members. We define an “influencer”—someone who is effective at broadly
distributing a message or driving action—based on a number of factors, including a person’s
connectedness, reach and ability to engage and drive results around a specific target audience
and discussion topic.

We employed our social media listening post and survey-based data collection methods for
these campaigns.
 O g i lv y I n s i g h t 7

Campaign 1: Consumer Impact—Evaluate Impact of a Social

Media Community Program on Consumer Aided Awareness
and Preference
Campaign 1’s social media program consisted of a blog community-based program. We
evaluated pre-campaign and interim measures based on a survey instrument. Measures
evaluated included aided awareness and purchase intent.

Figure 2: Consumer Impact—Awareness and Preference

Social Media Campaign Impact: Consumers

n Pre n Post
67%

48% 48%

20%
10%
6%

Aided Awareness Intent to Purchase (9 or 10) Positive Opinion (9 or 10)

8 O g i lv y I n s i g h t

Campaign 2: Influencer Impact—Evaluate Impact on Influencer

Preference for the Brand Based on a Multi-Channel Campaign
Including Social Media
Campaign 2’s social media program included social media components and a multi-channel
traditional and online advertising campaign.

We used a software monitoring product to track and categorize the tonality of social media
mentions around the brand. This product’s algorithm classifies social media discussions based on
a trainable, semantic, natural language-based categorization algorithm and has a high degree of
consistency and reliability in assigning social media mention sentiment and topic relevance5.

Our focus for this measurement program was to evaluate the impact on influencers driving brand
positioning and preference in social media; specifically, we evaluated the number of positive
mentions as a share of total positive mentions within the brand’s competitive set. There were five
competitors identified to be part of the competitive set.

For Campaign 2, we found an increase in influencer preference in social media mentions—as

measured by relative share of positive voice in social media—of 1.5 percentage points during the
first three months of the campaign. This represented a 9.2% increase in preference among those
posting in social media about the brand.

Figure 3 shows the monthly trend in preference.

Figure 3: Influencer Impact—Share of Positive Voice in Social Media

Social Media Campaign Impact: Influencers

Share of Positive Voice in Social Media
19.0%

18.2%
18.0% 17.7%

17.0%
17.1%
16.0%
16.2%
4-month Trend
15.0%

Dec-08 Jan-09 Feb-09 Mar-09

Pre-Launch Campaign Launch

5
It should be noted that our team’s approach is software-independent. We set up Social Media Listening Posts™
with underlying software that is the most appropriate for the specific client engagement.
 O g i lv y I n s i g h t 9

Use the Model

Today
In our early uses of the model, we’re finding that Preference and Positioning are two key areas
in which social media can deliver particularly efficiently—and we’re now implementing new
Action-based campaigns to further expand the range of social media goals.

We believe the model represents a useful step forward in social media impact measurement,
primarily due to its focus on tracking metrics with comparability across different types of
advertising and communications.

As social media increasingly becomes a standard component of both advertising and communi-
cations campaigns, this type of simple, cross-channel comparative framework will become more
useful in answering media allocation questions and helping marketers decide which social
media efforts are worthy of scaling further.
10 O g i lv y I n s i g h t

References

1 eMarketer Bridge Ratings and University of Massachusetts 2007.

2 RAMA/BIGresearch All About Moms, 2009.

3 Depending on volume and the prevalence of negative discussion, we may look at share of net
positive voice, where net positive voice = brand positive mentions – brand negative mentions.

4 The denominator may also be modified to include only the brand plus specific competitors.

5 It should be noted that our team’s approach is software-independent. We set up Social Media
Listening Posts™ with underlying software that is the most appropriate for the specific client
engagement.

The Nielsen Company, Global Faces and Networked Places, 2009.

 O g i lv y I n s i g h t 11

About the Authors

Irfan Kamal
Irfan brings significant experience in digital strategy and execution across
multiple industry sectors to Ogilvy Public Relations Worldwide (Ogilvy PR).

As part of the 360° Digital Influence team at Ogilvy PR, Irfan is responsible for
all aspects of planning and executing on innovative uses of digital media to help
clients achieve global marketing goals.

Irfan’s Digital Influence experience includes both B2C and B2B campaigns, for
clients such as IBM, Centers for Medicare and Medicaid Services, The Heart
Truth Campaign for NIH/NHLBI and Kaplan University. He is also leading the
introduction of a new social media measurement methodology and an
influencer activation product for the group.

Prior to joining Ogilvy PR, Irfan served as Entrepreneur-in-Residence for Jeff Bezos, Founder and CEO of
Amazon.com. In this role, he was in charge of researching, sourcing and evaluating digital startup investment
strategy and opportunities for Jeff Bezos’ personal investment. Irfan has also founded companies in the preventive
health social networking and media sectors, and has run a digital strategy consulting practice focused on
international aviation.

Irfan further brings several years of energy, infrastructure finance and financial services industry experience in roles
on the project finance and investment banking teams at Bechtel and Merrill Lynch Capital Markets respectively.

Irfan holds an MBA from the Graduate School of Business at Stanford and a BSE from Princeton University.

John H. Bell
John heads up the 360° Digital Influence team—Ogilvy PR’s global, digital word
of mouth marketing practice designed to manage brands at a time when
anyone can be an influencer and we are all influenced in new ways. His team
has developed and executed social media strategy for clients as diverse as
TJMaxx, Lance Armstrong Foundation, Lenovo, Unilever and more. The team’s
focus is on engaging through conversations, outreach to new influencers and
word of mouth marketing.

John is a Web 1.0 graduate. As Creative Director at Discovery Communications,

he transformed a single Web site into 14 Web communities and services from
DiscoveryKids.com to Animalplanet.com and more. In the early nineties, when
interactive television was imminent, John headed up the creative studio for the
joint ITV venture between Viacom and AT&T.

Currently, John serves as the President of the board of the Word of Mouth Marketing Association. He teaches
graduate studies in Digital Influence at Johns Hopkins University.

His blog is: The Digital Influence Mapping Project—http://johnbell.typepad.com

His twitter name is: jbell99

12 O g i lv y I n s i g h t

About 360° Digital Influence

Ogilvy PR’s 360° Digital Influence is Ogilvy’s global social media marketing practice. We use word of mouth and
digital marketing to deliver measurable results. We have technology and methodology for identifying and
engaging influencers and activating networks of people to share and recommend products, services and issues.
We create engaging experiences designed to promote awareness, brand loyalty, advocacy and conversion. The
practice is led by Managing Director, John Bell, who is currently serving as President of the Word of Mouth
Marketing Association (WOMMA).

About Ogilvy Public Relations Worldwide

Ogilvy Public Relations Worldwide (www.ogilvypr.com) is an integrated global marketing communications firm,
with offices in more than 70 cities around the world. We blend proven PR methodologies with cutting edge digital
innovations to craft strategic programs that give clients winning and measurable results. In its 28th year, Ogilvy
PR provides strategic public relations counsel to a variety of clients across its 360° Digital Influence, consumer
marketing, corporate, healthcare, technology, public affairs and social marketing practices. The agency also
offers biotechnology and government affairs expertise through its subsidiaries Feinstein Kean Healthcare and
Ogilvy Government Relations, respectively. Ogilvy PR is a WPP company (NASDAQ: WPPGY,
www.wpp.com) one of the world’s largest communications services organizations.

About Ogilvy & Mather

Ogilvy & Mather is one of the largest marketing communications companies in the world. Through its specialty
units, the company provides a comprehensive range of marketing services including: advertising; public relations
and public affairs; branding and identity; shopper and retail marketing; healthcare communications; direct,
digital, promotion and relationship marketing. Ogilvy & Mather services Fortune Global 500 companies as well as
local businesses through its network of more than 450 offices in 120 countries. It is a WPP company (NASDAQ:
WPPGY).  For more information, visit www.ogilvy.com.
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14 O g i lv y I n s i g h t