"As an industry, we need to get past the point of listening

to closely to so-called social media gurus who respond to

dealer questions about ROI by dancing around the use of
objective measurements in applying performance analysis
to automotive social media marketing initiatives.
-- Ralph Paglia
NADA Narket!NS!CHT: Does the
RO! on Social Nedia Pencil?
New !deas on Neasuring
Performance of Social Nedia
W What Debunk many of the fallacies surrounding social media by
applying measurement and tracking systems to eliminate mysteries
surrounding social media marketing and reputation management ROI.
W Why Despite an endless supply of new social media sites similar to,
but different from Facebook, YouTube, Twitter, Google, DealerRater
and hundreds of others, there has been little effort to supply dealers
with tools to measure and report results. Yet, dealers are being
inundated with various spins on social/digital media made during new
vendor pitches for dealer dollars.
W 4 The current situation around social
media is like the 18th century question, "How "How
many angels can dance on the head of a pin?" many angels can dance on the head of a pin?"
In my opinion, too many social media pundits
dance around each dealer inquiry concerning
tracking, results measurement and ROI
analysis. Put measurement systems in place
BEFORE starting a social media initiative!
orrester's RO! Nethodology
Costs Costs
2pact on 2pact on expenses) expenses)
Benefits Benefits
2pact on 2pact on dealership) dealership)
FIexibiIity FIexibiIity
Proactive Proactive vs vs Reactive Reactive)
R R
II
SS
K K
TotaI TotaI
DeaIer DeaIer
Economic Economic
Impact Impact
Uncertainty
W 2pact of "assu2ptions assu2ptions
Benefits
W "uantified value
W efined 2etrics
"Options" created
W Are there new opportunities
created for future revenue
and profit realization?
Cost
W People
W Process
W %echnology
There are many benefits of There are many benefits of
OnIine DeaIer Communities. OnIine DeaIer Communities.
$ource: %he %he ROI ROI 41 Online Cust42er 41 Online Cust42er C422unities C422unities" " orrester Research
utomotive utomotive ExampIes ExampIes
Strategic Strategic ROI ROI Proforma Proforma..
PIanning PIanning
%he essential
ingredient to
driving with
your eyes open!
Objectives Objectives
%he essential
ingredient to
getting results.
SociaI Media ResuIts Known = DeaIer SociaI Media ResuIts Known = DeaIer ROI ROI the What) the What)
1. Marketing Communications: Create and Publish content that attracts consu2ers
within de2ographics targeted by social 2edia 2arketing strategy. Use $ocial Apps to
engage/interact/convert.
2. Reputation Management:
A. Monitor social web for content posted containing dealership brand.
B. 911 ast Response $trategy and Process for negative content posted. Notify dealer POC's of
what was posted, when and by who. $end POC copy, including response published and
actions/due dates required
C. "$ocial Rewards strategy for positive posts, co22ents and 2entions
. Pro2ptly create and post appropriate responses to all dealership 2entions so people see your
store cares, pays attention, responds, appreciates co2pli2ents and resolves custo2er
concern issues
3. Traffic Generation: Use anchor text and linked content to drive targeted traffic fro2
social 2edia sites into dealer's social assets and websites, inco2ing phone calls to
social 2edia assigned nu2bers, use stories to drive showroo2 traffic
4. Improve SEO Strategy: "uickly increase the dealership $O "footprint with
2ultiple $RP listings fro2 dealer's $ocial Media accounts and profile subdo2ains.
Back links fro2 hundreds of $ocial Media sites to dealer's eCo22erce sites boost
authority and rank with search engines.
1. Create and Publish high quality content that attracts and engages
people in de2ographic categories your overall dealership
2arketing progra2s seek and target
2. Monitor every post that 2entions your dealership, report to key
dealership stakeholders on what it is, when, where and by who
3. Pro2ptly post appropriate responses to all dealership 2entions so
people see your store cares, pays attention, responds, appreciates
co2pli2ents and resolves custo2er concern issues
4. rive qualified traffic fro2 social 2edia sites earned 2edia) to
dealership sites owned 2edia) defined by 2arketing strategy
5. 2prove $O "footprint by creating 2ultiple $RP listings using
dealership branded $ocial Media accounts and profile pages
Social Nedia Narketing Tactical Objectives Social Nedia Narketing Tactical Objectives (the How) (the How)
Good ROI anaIysis requires accurate historicaI performance data
which few dealers have). Capturing and analyzing historical data requires
ti2e and discipline. t's easy to cast aside analytical tasks when everyone
is focused on 2aking deals and generating profit. HistoricaI data sets a
baseIine for measuring the "DeIta". %hat change can then be 2easured
and co2pared to actions that 2ay have caused it. If you can correIate
SociaI Media initiative actions to impact, then you can caIcuIate ROI.
HIstory and CorreIatIon HIstory and CorreIatIon
utomotive venues Internet SaIes Lead voIume utomotive venues Internet SaIes Lead voIume
Year Year Before Before Investing resources into SociaI Media Marketing Investing resources into SociaI Media Marketing
2,383 2,383
Leads Submitted nnuaIIy Leads Submitted nnuaIIy
Above the National Average Above the National Average
for 2etro car dealers of 968) for 2etro car dealers of 968)
,340 ,340
Leads Submitted nnuaIIy Leads Submitted nnuaIIy
1 Increase 1 Increase
During Worst Economic During Worst Economic
CIimate in 30 Years! CIimate in 30 Years!
utomotive venues Internet SaIes Lead voIume utomotive venues Internet SaIes Lead voIume
Year Year fter fter Investing resources into SociaI Media Marketing Investing resources into SociaI Media Marketing
Does posting reIevant BIog content that attracts Traffic Does posting reIevant BIog content that attracts Traffic
yieId an increase in voIume of Internet SaIes Leads? yieId an increase in voIume of Internet SaIes Leads?
SaIes SaIes
Leads Leads
BIog BIog
Visitors Visitors
Historic
w/$500
coupon w/Video
$ales Leads 100 100 100
Average Gross PVR $1,500 $1,000 $1,500
Lead/$ales Rate 5 10 15
Profit fro2 Units $old $7,500 $10,000 $22,500
ncre2ental profit fro2
Action
N/ $2,500 $15,000
Cost of incentive N/ $500 $2,500
ROI ROI N/ N/ 400 400 500 500
Does posting YouTube videos designed to Does posting YouTube videos designed to
drive Lead Form submissions generate drive Lead Form submissions generate ROI ROI??
PUTTING IT LL TOGETHER
Apply all the 2easure2ent factors available for B2C social 2arketing scenarios. %hen
co2pare the RO of vents to buying R" leads. $tart with historical data. What is
the conversion rate of leads fro2 special events versus 3
rd
Party Leads? What is the
lifeti2e value of an average car buyer to your dealership? Co2pare the outputs and
divide by costs to assess RO:
ROI ROI Performance Metrics Performance Metrics
ssumptions:
1. verage cost of a speciaI event for 100 RSVP attendees = $3,000
2. PeopIe attending your events convert at a 2 saIes rate (30 days)
3. verage cost of buying 500 3
rd
Party Leads is $10,000
4. 3
rd
Party Leads convert to saIes at a 1 rate.
ROI naIysis: SpeciaI Event 3
rd
Party Leads
Audience size 100 500
Conversion rate 2% 1%
Lifeti2e profitability $10,000 $ 25,000
Cost of acquisition $ 3,000 $ 10,000
ROI 233 150
Leads Leads Lead Lead VaIue VaIue Cost Cost
QuarterIy QuarterIy
ROI ROI
CumuIative CumuIative
ROI ROI
1-"1
10 $ 1,000 $ 2,000 -50 -50
1-"2
25 $ 2,500 $ 2,000 25 -13
1-"3
35 $ 3,500 $ 2,000 75 17
1-"4
50 $ 5,000 $ 2,000 150 50
2-"1
75 $ 7,500 $ 4,000 88 3
2-"2
100 $ 10,000 $ 4,000 150 84
2-"3
130 $ 13,000 $ 4,000 225 113
2-"4
160 $ 16,000 $ 4,000 300 144
Let's look at one 2ore exa2ple in which we use a blog for lead generation. We know that
perfor2ance 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 i2prove steadily as
traffic builds. We expect to be at 50 leads per 2onth by the end of the first year and 160 per
2onth by the end of the second. Our historical data tells us that a lead is worth $100. We
further esti2ate 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 cu2ulative RO.
Lead Generation from rticIe Marketing Lead Generation from rticIe Marketing
VaIue Measurement
Customer
satisfaction
Custo2er surveys; renewal rates; referrals; incre2ental business;
testi2onials; Net Pro2oter $core
Customer IoyaIty Renewal rates; incre2ental business, response rates, event
attendance; testi2onials; Net Pro2oter $core
Customer
engagement
Newsletter subscriptions; online co22unity activity; response rates;
event attendance; testi2onials; feedback volu2e
Reputation Market share; awareness research; 2edia citations; analyst research
Market infIuence Market share research; lift studies; 2edia/social 2edia citations;
speaking invitations; analyst research
Leadership Attitudinal research; growth rate; 2edia citations; copycat co2petitors
%he trickiest aspect of RO analysis is accounting for intangibles. %hese include factors
like custo2er satisfaction, custo2er loyalty, brand reputation and 2arket influence.
Many social 2arketing projects are justified for these reasons but the outputs are never
2easured, either because it's not worth the effort or because the 2easure2ents aren't
in place. n fact, all of these outputs can be 2easured and have been for years using
so2e of the following tests:
Measuring Measuring IntangibIes IntangibIes
utomotive utomotive Marketing Marketing ROI ROI; By SociaI Media ChanneI ; By SociaI Media ChanneI
What happened when 11,159 PeopIe in San ntonio What happened when 11,159 PeopIe in San ntonio
Visited nciraCommunity.com Visited nciraCommunity.com
W 18,374 Visits
W 11,159 bsoIute Unique Visitors
W 90,715 Pageviews
W 4.94 verage Pageviews
W 00:04:32 Time on Site
W 48.12 Bounce Rate
W 0.3 New Visits
What is the DispIay dvertising Media EquivaIent VaIue
of nciraCommunity.com Impressions?
W 18,374 Visits
W 11,159 bsoIute Unique Visitors
W 90,715 Pageviews
The aggregate average Cost Per Thousand Impressions (CPM)
for "utomotive Intender" geotargeted advertising in San ntonio
market is $7.57 CPM.
90,715 90,715 Pageviews Pageviews = 907.15 = 907.15 CPM CPM Units Units
907.15 x $7.57 = 907.15 x $7.57 = $,87.13 $,87.13
dvertising EquivaIent VaIue dvertising EquivaIent VaIue
What is the GoogIe dwords Pay Per CIick (PPC) Search
dvertising Media EquivaIent VaIue?
W 18,374 Visits
W 11,159 bsoIute Unique Visitors
W 90,715 Pageviews
%he aggregate average C4st Per Click (CPC) 14r G44gle Ad4rds
ca25aigns 14r aut424tive relevant key4rds ge4targeted ithin San
Ant4ni4 Metr4 is $2.64 CPC.
18,374 Community Visits = 18,374 CIick 18,374 Community Visits = 18,374 CIick Throughs Throughs
18,374 CIicks x $2.4 CPC = 18,374 CIicks x $2.4 CPC = $48,507.3 $48,507.3
dvertising EquivaIent VaIue dvertising EquivaIent VaIue
What is the comparabIe Cost Per Unique Visitor
EquivaIent VaIue?
W 18,374 Visits
W 11,159 bsoIute Unique Visitors
W 90,715 Pageviews
%he aggregate average C4st Per Unique Visit4r (CPUV) 14r all
4ther Ancira Aut4 Gr4u5 4nline ca25aigns 14cused 4n driving
tra11ic t4 Ancira Web Sites $2.12 CPUV.
11,159 Unique Visitors 11,159 Unique Visitors
X $2.12 X $2.12 CPUV CPUV
------------------------------------ ------------------------------------
$23,57.08 $23,57.08
dvertising EquivaIent VaIue dvertising EquivaIent VaIue
What is the SociaI Media ggregate EquivaIent
Media VaIue verage for nciraCommunity.com
within the time period measured?
$,87.13 $,87.13 CPM CPM
$48,507.3 $48,507.3 PPC PPC
$23,57.08 $23,57.08 CPUV CPUV
------------------------ ------------------------
(79,031.57 / 3) = (79,031.57 / 3) = $2,343.85 $2,343.85
$ocial Media Marketing: $ocial Media Marketing:
Measurements to FinanciaI VaIues for Measurements to FinanciaI VaIues for ROI ROI
SociaI Media Marketing SociaI Media Marketing - - ROI ROI Categories Categories
ds were seen 7,201,334 times in October by
Facebook members who Iive near the two
deaIerships in this case study.
1,730 of those Facebook members cIicked on
one the two deaIer advertisements.
Since we spent $1,595.25 for the Facebook d
Campaigns, each cIick customer visit to our
community site, or Fan page cost 92 cents.
To show Facebook members our deaIership
ads 1,000 times, it cost 22 cents.
ds were seen 7,201,334 times in October by
Facebook members who Iive near the two
deaIerships in this case study.
1,730 of those Facebook members cIicked on
one the two deaIer advertisements.
Since we spent $1,595.25 for the Facebook d
Campaigns, each cIick customer visit to our
community site, or Fan page cost 92 cents.
To show Facebook members our deaIership
ads 1,000 times, it cost 22 cents.
1
Birth of a SociaI Community
DP buiIds nciraCommunity.com integrated
w//Facebook, Twitter, FIickr, etc.
ncira personneI & suppIiers set-up profiIes -
Get engaged - Create Content
Case Study: ncira uto Group Case Study: ncira uto Group
2
Registration / PubIication
Site Registered in 120 SociaI Venues
Web based consoIe manages aII accounts
WiII you be my Facebook friend?
Subscribe to our YouTube channeI
FoIIow Us on Twitter
DeaIer Information
ncira Crafts Their Message
EmpIoyees engage discussions
3
Syndicated Content
Interviews with Civic Ieaders
ReIevant Info From Other Sources
4
LocaI Interest
HighIight ncira Civic Leadership
Become IocaI sociaI media Ieader
5
User Content
Fun Stuff For Customers
Road tests, reviews & how to's
"Canine Romance BIooms."

Case Study: Case Study: ncira ncira uto Group uto Group - - San ntonio San ntonio
S4cial Media Re5utati4n Manage2ent Results S4cial Media Re5utati4n Manage2ent Results
"I am abso|ute|y b|own away "I am abso|ute|y b|own away
that you not on|y responded that you not on|y responded
but that you use soc|a| med|a" but that you use soc|a| med|a"
"I w||| be happy to exp|a|n "I w||| be happy to exp|a|n
to everyone the fantast|c to everyone the fantast|c
serv|ce I rece|ved" serv|ce I rece|ved"
Positive
custo2er
feedback
"Heaters
Beco2e
Raving
ans
$earch
ngine
Results
$RP)
Branded $earch
SERP Returns
10 pages of
ncira SociaI
Media content
Consu2er
Response to
$ocial Media
Advertising
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ancira auto group
ancira chevrolet
ancira kia san antonio