Digital Dealer Conference 9 - Social Media ROI Strategies and Tactics - Ralph Paglia

1 Ralph Paglia; 9
th
Digital Dealer Conference www.SociaIAutoSaIes.com www.SociaIAutoSaIes.com
"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.
easuring Performance and Tracking
ROI from SociaI edia arketing and
Reputation anagement
easuring Performance and Tracking
ROI from SociaI edia arketing and
Reputation anagement
Session Session #304 #304
ow to overcome sociaI media gurus that respond to ROI questions by
dancing around objective measurement criteria and ROI anaIysis of
sociaI media marketing and reputation management initiatives."
Introduction and Background:
#,5 P,i, #,5 P,i,
Director Director - - DigitaI arketing DigitaI arketing
DeaIer DeaIer Services Services
W urrentIy Ieading buiId-out and deveIopment of new
ADP/ASU Joint Venture at www.SkySongenter.com
in ScottsdaIe, AZ for new home of expanded ADP/BZ
SociaI edia Reputation anagement Team providing
Strategic ImpIementation" of FuIIy anaged SoIutions for DeaIers...
W enerated 144,000+ leads in 22 months while working for Courtesy Chevrolet.
W anaged Courtesy Chevy nternet Sales team that sold 4,000+ Units in 2006.
W orked w/Ford in 2007-2009 to develop first fully integrated multi-publisher
Tier 3 Digital arketing Consulting and Co-Op supported Advertising program.
W Ran 1
st
retail automotive Behavioral Targeting Digital Advertising program.
W nternet Sales & arketing Consultant to Ford, ercedes-Benz, ,
Honda, Toyota, ercedes-Benz, Hyundai and 250+ dealers & groups.
W Pioneered development of "nternet Leads in 1988 using CompuServe SP access to
post new and used vehicle listings on defense contractor BBS's in San Diego, CA.
Cell: 505.301.6369 raIph_pagIia@adp.com www.RaIphPagIia.com RaIphPagIia.com
www.ADPsociaI.com www.ADPsociaI.com www.ADPsociaI.com www.ADPsociaI.com
3 Ralph Paglia; 9
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Join the social media revolutionl Join the social media revolutionl
Ralph Paglia; 9
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4
ADP has Verified Five Return On Investment (ROI) ADP has Verified Five Return On Investment (ROI)
Areas of Opportunity for DeaIers who ImpIement a Areas of Opportunity for DeaIers who ImpIement a
SociaI edia Reputation anagement Strategy SociaI edia Reputation anagement Strategy
irst tins irst irst tins irst - - W,t About #eturn on Investment? W,t About #eturn on Investment?
"Do not confuse the ubiIity to truck und meusure resuIts
with whether or not it generutes u Return On Investment,
Your ROI is reuIized whether or not you huve the ubiIity to
correctIy meusure the resuIts|"
- Red cCombs
(FATOID: combs is #1 financiaIIy successfuI car deaIer in history)
Return On !nvestment (RO!):
A performance measure used to evaluate the efficiency of an investment or to
compare the efficiency of a number of different investments. To calculate RO!,
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 RO! 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 RO! 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.
&ocial Nedia:
&ocial Nedia is media designed to be disseminated through social
interaction, created using highly accessible and scalable
publishing techniques. &ocial media uses !nternet and webbased
technologies to transform broadcast media monologues (one to
many) into social media dialogues (many to many). !t supports
the democratization of knowledge and information, transforming
people from content consumers into content producers.
Andreas Kaplan and Nichael Haenlein define social media as a
group of !nternetbased applications that build on the ideological
and technological foundations of Web 2.0, and that allow the
creation and exchange of usergenerated content. Businesses also
refer to social media as usergenerated content (UCC) or
consumergenerated media (CCN).
&ocial 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.
Ralph Paglia; 9
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orrester's RO methodology
osts osts
mpact on budget) mpact on budget)
Benefits Benefits
mpact on business) mpact on business)
FIexibiIity FIexibiIity
Options Options)
R R
II
SS
K K
TotaI TotaI
Economic Economic
Impact Impact
Uncertainty
W mpact of "assumptions
Benefits
W "uantified value
W Defined metrics
Options" created
W Are there new
opportunities in the future?
ost
W People
W Process
W Technology
Ralph Paglia; 9
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Benefits Benefits
mpact on business) mpact on business)
amples of Benefits
W Cost savings
W Reduce call volume
W Reduce email volume
W ncrease BDC productivity
W ncrease in FCR
W Reduce SEO costs
W Profit mprovements
ncrease customer lifetime value
ncrease Sales deation
ncrease Lead Conversion Rates
Source:
ay, 2009 "The ROI of OnIine ustomer ommunities Forrester report
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There are many benefits of
OnIine DeaIer ommunities.
Source: "The RO of Online Customer Communities Forrester
-----------
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SociaI edia ResuIts Known = DeaIer SociaI edia ResuIts Known = DeaIer ROI ROI
1. arketing ommunications: Create and Publish content that attracts
consumers within demographics targeted by social media marketing
strategy. Use Social Apps to engage/interact/convert.
2. Reputation anagement:
A. onitor 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
. Improve SEO Strategy: "uickly increase the dealership SEO
"footprint with multiple SERP listings from dealer's Social edia accounts
and profile subdomains. Back links from hundreds of Social edia sites to
dealer's eCommerce sites boost authority and rank with search engines.
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Digital Dealer Conference www.SociaIAutoSaIes.com www.SociaIAutoSaIes.com 13 Ralph Paglia; 9
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$ocial Media Marketing Ob]ectives
1. Create and Publish high quality content that attracts
and engages people in demographic categories your
overall dealership marketing programs seek and target
2. onitor 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. mprove SEO "footprint by creating multiple SERP
listings for dealership Social edia accounts
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Good ROI anaIysis aImost aIways requires
accurate historicaI information (which few
deaIers have). Capturing and analyzing historical
data requires time and discipline. t'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. istoricaI
data sets a baseIine for measuring the DeIta".
That change can then be measured and compared to
actions that may have caused it. If you can correIate
action to impact, then you can caIcuIate ROI.
HIstory and CorreIatIon HIstory and CorreIatIon
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Automotive Avenues Internet SaIes Leads
Before Investing in SociaI edia arketing
2,33 2,33
Leads Submitted AnnuaIIy Leads Submitted AnnuaIIy
Above the National Average Above the National Average
for metro car dealers of 968) for metro car dealers of 968)
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6,30 6,30
Leads Submitted AnnuaIIy Leads Submitted AnnuaIIy
166% Increase 166% Increase
During Worst Economic During Worst Economic
Iimate in 30 Years! Iimate in 30 Years!
Automotive Avenues Internet SaIes Leads
After Investing in SociaI edia arketing
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n the following example, lead activity appears to correlate
positively with traffic to all the dealer's blogs. The positive
correIation is indicated by the change from baseIine, which
appears to correspond with the upward movement in bIog
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 correIations can be a time-consuming process,
requiring new variabIes to be introduced independentIy of
each other so that change can be isoIated. However, you
don't necessarily have to test only one variable at a time. ith
split testing, you can try two different experiments, each
targeting a different segment of your customer base.
HIstory and CorreIatIon HIstory and CorreIatIon
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Does BIog Traffic Lead to Increased Does BIog Traffic Lead to Increased
VoIume of Internet SaIes Leads? VoIume of Internet SaIes Leads?
SaIes SaIes
Leads Leads
BIog BIog
Visitors Visitors
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istoric w/$500 coupon w/Video
Sales Leads
100 100 100
Average ross PVR
$1,500 $1,000 $1,500
Closerate
5% 10% 15%
Profit from Units Sold
$,500 $10,000 $22,500
ncremental profit from
Action
N/A $2,500 $15,000
Cost of incentive
N/A $500 $2,500
ROI
N/A 00% 500%
Does a YouTube Video Lead Response Does a YouTube Video Lead Response
Generate a Generate a ROI ROI??
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etrics
eb analytics today deliver unprecedented insight about online interactions.
The basic features of the free oogle 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.
ith 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. e'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. n Chapter XX, we
listed some common metrics you can use and how they relate to different
business goals. e 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.
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etrics
The best way to select relevant metrics is to work backwards. Start with sales trends, match them
to eb 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 eneral Electric and American
Express as a key performance indicator.
You can also choose to monitor classic metrics that have nothing to do with the nternet. These
include press mentions, speaking invitations and performance on customer satisfaction
surveys. etrics 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 RO purposes, though, the choice of metrics is less important than your ability to correlate
behavior to results. n 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 RO. Just be
aware that they are imperfect indicators of visitor engagement.
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One thing you absolutely need to know, however, is how people reach your site. Unique
URLs are a way to measure that. e'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 RO of each channel. ithout 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 RO 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.
etrics etrics
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PUTTING IT ALL TOGETER
Let's apply all the factors we've described above to two B2B social marketing scenarios.
First, we'll compare the RO of webcasts to white papers. Start with historical data. hat
is the conversion rate of webcast viewers versus people who download a white paper?
hat is the lifetime value of an average customer? Compare the outputs and divide by
costs to assess RO:
etrics etrics
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%
Let's assume the foIIowing:
W The average lifetime value of a customer is $50,000 at a 10% profit margin.
1. Average cost of deIivering webcast to 100 registered viewers = $3,000
2. Viewers convert at a 2% rate
3. Average cost of deIivering white paper to 500 registrants is $10,000
. Registrants convert at a 1% rate.
Our ROI anaIysis Iooks Iike this:
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Leads Lead vaIue ost
QuarterIy
ROI
umuIative
ROI
Y1-"1
10 $ 1,000 $ 2,000 -50% -50%
Y1-"2
25 $ 2,500 $ 2,000 25% -13%
Y1-"3
35 $ 3,500 $ 2,000 5% 1%
Y1-"4
50 $ 5,000 $ 2,000 150% 50%
Y2-"1
75 $ 7,500 $ 4,000 % 63%
Y2-"2
100 $ 10,000 $ 4,000 150% %
Y2-"3
130 $ 13,000 $ 4,000 225% 113%
Y2-"4
160 $ 16,000 $ 4,000 300% 1%
Let's look at one more example in which we use a blog for lead generation. e 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. e 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.
e 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 RO.
Lead Generation Lead Generation
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VaIue easurement
ustomer
satisfaction
Customer surveys; renewal rates; referrals; incremental business;
testimonials; Net Promoter Score
ustomer IoyaIty Renewal rates; incremental business, response rates, event
attendance; testimonials; Net Promoter Score
ustomer
engagement
Newsletter subscriptions; online community activity; response rates;
event attendance; testimonials; feedback volume
Reputation arket share research; awareness research; media citations; analyst
research
arket infIuence arket share research; lift studies; media/social media citations;
speaking invitations; analyst research
Leadership Attitudinal research; growth rate; media citations; copycat competitors
The trickiest aspect of RO analysis is accounting for intangibles. These include factors like
customer satisfaction, customer loyalty, brand reputation and market influence. any 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.
n fact, all of these outputs can be measured and have been for years using some of the
following tests:
easuring easuring IntangibIes IntangibIes
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VaIuing Twitter FoIIowers
hen 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.
hat 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. f 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. f 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. f you want to dive deeper
into the mechanics of influence, services likeTweetReach.com and TwinfIuence.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, Linkedn connections, SlideShare
followers and the like.
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hen 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. f 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.
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StiII, you can't improve what you don't measure. So if your
goaI is to measure traffic, saIes, or SEO ranking, here are
some free tooIs that can heIp:
oogle 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.
r.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.
etClicky.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.
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ebslug.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.
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hat is a $ocial Media $trategy?
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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. FinanciaI metrics
2. DigitaI metrics
3. Brand etrics
. Risk anagement
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First of all, RO is a business metric, not a media metric. Stop
calling measuring social media marketing success a calculation of
"RO. t'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. y own presentation from
the Social edia 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. BuiIding ommunity
3. ustomer Service
. Research and DeveIopment
5. Direct SaIes
Date Impress|ons C||cks
C||ck
kate Act|ons
Act|on
kate
Con
vers|ons CC CM
Spent
(USD)
Un|que
Impress|ons
Un|que
C||cks
Un|que
C||ckkate
3/1/2010 126382 27 002 7 001 2 $033 $012 $1493 31380 27 009
3/2/2010 73434 13 002 3 000 0 $033 $009 $683 21782 13 006
3/3/2010 36732 12 002 4 001 1 $031 $011 $616 13364 11 007
3/4/2010 23836 7 003 8 003 0 $047 $013 $328 3394 6 011
3/3/2010 12326 2 002 2 002 1 $049 $008 $098 2422 2 008
3/6/2010 20423 10 003 4 002 1 $032 $023 $313 2969 10 034
3/7/2010 38381 23 004 3 001 2 $031 $020 $1171 9873 23 023
3/8/2010 73386 20 003 13 002 4 $049 $013 $978 14071 20 014
3/9/2010 38396 12 002 7 001 1 $030 $010 $604 11934 12 010
3/10/2010 46371 16 003 3 001 2 $049 $017 $783 8873 16 018
3/11/2010 32103 16 003 6 001 2 $032 $016 $836 10706 16 013
3/12/2010 33708 13 002 7 001 7 $033 $013 $683 10613 13 012
3/13/2010 91869 26 003 17 002 19 $048 $014 $1237 13386 26 019
3/14/2010 122623 34 003 17 001 18 $030 $014 $1707 16490 34 021
3/13/2010 76608 13 002 3 001 6 $049 $010 $737 13481 14 010
3/16/2010 60239 16 003 3 001 6 $031 $014 $814 10984 16 013
3/17/2010 38640 12 003 3 001 7 $032 $016 $624 8173 12 013
3/18/2010 38249 16 004 6 002 7 $032 $022 $823 7862 16 020
3/19/2010 17339 7 004 8 003 6 $046 $018 $321 3892 7 018
3/20/2010 31187 8 003 4 001 6 $049 $013 $390 6832 8 012
3/21/2010 124746 91 007 71 006 73 $033 $023 $3173 13677 87 036
3/22/2010 177920 129 007 98 006 103 $033 $024 $4210 23439 129 033
3/23/2010 138400 120 008 77 003 83 $031 $023 $3713 20604 119 038
3/24/2010 136233 117 008 76 003 89 $031 $023 $3610 20903 114 033
3/23/2010 199617 103 003 69 004 84 $033 $017 $3478 23983 104 040
3/26/2010 119699 80 007 49 004 39 $034 $023 $2732 18618 80 043
3/27/2010 102171 70 007 39 004 38 $033 $024 $2413 13879 70 044
3/28/2010 140720 87 006 38 004 81 $034 $021 $2993 19178 87 043
3/29/2010 139643 83 006 34 004 64 $033 $021 $3000 19406 84 043
3/30/2010 123990 82 007 46 004 60 $036 $024 $2987 18240 80 044
3/31/2010 131634 74 006 37 003 31 $039 $022 $2896 18110 73 040
4/1/2010 133820 80 003 39 003 49 $038 $020 $3000 19466 78 040
4/2/2010 147711 77 003 46 003 49 $039 $020 $2987 19101 77 040
1ota|s 3017S80 1S02 00S 897 003 100S 5038 0195S6663 481731 1484 031
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How Do You Calculate the RO of a Blog?
W Domain name/hosting = $20 - $30 per month
W Software = Using WordPress or simiIar - free ($150 for set up)
W onthIy bIogging 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.
ow much is your time worth? OK, so what are the benefit? They are Iegion:
W W Increased Search Increased Search EEngine Presence ngine Presence
W W ustomer Feedback ustomer Feedback
W W Link Link PpopuIarity PpopuIarity and and PageRank PageRank
W W Targeted traffic to your website Targeted traffic to your website
W W Increased saIes voIume Increased saIes voIume
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1
Birth of a SociaI ommunity
ADP buiIds Anciraommunity.com integrated
w//Facebook, Twitter, FIickr, etc.
Ancira personneI & suppIiers set-up profiIes -
Get engaged - reate ontent
Social edia Case Study: Social edia Case Study: Ancira Auto Group Ancira Auto 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
Ancira rafts Their essage
EmpIoyees engage discussions
3
Syndicated ontent
Interviews with ivic Ieaders
ReIevant Info From Other Sources
LocaI Interest
ighIight Ancira ivic Leadership
Become IocaI sociaI media Ieader
5
User ontent
Fun Stuff For ustomers
Road tests, reviews & how to's
anine Romance BIooms."
6
Case Study: Ancira Auto Group - San Antonio
$ocial Media Reputation Management 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
customer
feedback
"Heaters
Become
Raving
Fans
Search
Engine
Results
SERP)
Branded Search
SERP Returns
10 pages of
Ancira SociaI
edia content
Consumer
Response to
Social edia
Advertising
ancira dodge san antonio
ancira auto group
ancira chevrolet
ancira kia san antonio
3 Ralph Paglia; 9
th
11,159 PeopIe Visited
Anciraommunity.com
W 1,3 Visits
W 11,159 AbsoIute Unique Visitors
W 90,15 Pageviews
W .9 Average Pageviews
W 00:0:32 Time on Site
W .12% Bounce Rate
W 60.36% New Visits
Ralph Paglia; 9
th
What is the DispIay Advertising edia EquivaIent
VaIue of Anciraommunity.com Impressions?
W 1,3 Visits
W 90,15 Pageviews
The aggregate average ost Per Thousand Impressions
(P) for Automotive Intender" websites geotargeted
within the San Antonio market area is $.5 P.
90,15 90,15 Pageviews Pageviews = 90.15 = 90.15 P P Units Units
90.15 x $.5 = 90.15 x $.5 = $6,6.13 $6,6.13
5 Ralph Paglia; 9
th
What is the GoogIe Adwords Pay Per Iick (PP)
Search Advertising edia EquivaIent VaIue?
W 1,3 Visits
W 90,15 Pageviews
%e ,re,te ,ver,e Cost Per Cick (CPC) for Gooe
Adwords c,m5,ins for ,utomotive reev,nt keywords
eot,reted witin S,n Antonio Metro is $2.64 CPC.
1,3 ommunity Visits = 1,3 Iick 1,3 ommunity Visits = 1,3 Iick Throughs Throughs
1,3 Iicks x $2.6 P = 1,3 Iicks x $2.6 P = $,50.36 $,50.36
6 Ralph Paglia; 9
th
What is the comparabIe ost Per Unique Visitor
EquivaIent VaIue?
W 1,3 Visits
W 90,15 Pageviews
%e ,re,te ,ver,e Cost Per Unique Visitor (CPUV)
for , oter Ancir, Auto Grou5 onine c,m5,ins focused
on drivin tr,ffic to Ancir, Web Sites $2.12 CPUV.
11,159 Unique Visitors 11,159 Unique Visitors
X $2.12 X $2.12 PUV PUV
------------------------------------ ------------------------------------
$23,65.0 $23,65.0
Ralph Paglia; 9
th
What is the SociaI edia Aggregate EquivaIent
edia VaIue Average for Anciraommunity.com
within the time period measured?
$6,6.13 $6,6.13 P P
$,50.36 $,50.36 PP PP
$23,65.0 $23,65.0 PUV PUV
------------------------ ------------------------
(9,031.5 / 3) = (9,031.5 / 3) = $26,33.5 $26,33.5
Ralph Paglia; 9
th
Automotive Avenues ommunity GoogIe AnaIytics
(3 weeks of Facebook Advertising Campaign)
9 Ralph Paglia; 9
th
(3 weeks of (3 weeks of ,cebook ,cebook Advertisin C,m5,in) Advertisin C,m5,in)
#I #I Lesson Le,rned: Lesson Le,rned: ,cebook ,cebook Advertisin works best wen Advertisin works best wen
used to drive tr,ffic to, ,nd 5romote used to drive tr,ffic to, ,nd 5romote ,cebook ,cebook De,er P,es, De,er P,es,
Grou5s ,nd S5eci, ffers osted witin ,cebook.com Grou5s ,nd S5eci, ffers osted witin ,cebook.com
50 Ralph Paglia; 9
th
Automotive Avenues ommunity GoogIe AnaIytics
53 Ralph Paglia; 9
th
Example of RO Report enerated by Spreadsheet acros
based on calculated values of Fans, Followers, Subscribers,
mpressions, Click-Throughs, etc.
Source]Med|um V|s|ts
ages
]V|s|t
Avg 1|me
on S|te
New
V|s|ts
8ounce
kate
goog|e ] organ|c 2947 197 2034 87S1 743S
(d|rect) ] (none) 2822 247 1018 6867 6733
appsfacebookcom ] referra| 1S23 111 1S29 9S40 9120
facebookcom ] referra| S33 2S7 0S4 76SS 7430
autoavescom ] referra| 447 280 1116 S772 6264
yahoo ] organ|c 266 167 1027 9023 7293
b|ng ] organ|c 260 189 2147 8692 711S
goog|eadsgdoub|ec||cknet ] referra| 121 128 1118 9S87 8S12
goog|ecom ] referra| 119 1S2 1129 9748 S714
tw|ttercom ] referra| 9S S66 1S24 3S79 4000
search ] organ|c 77 16S 20S2 8S71 67S3
autod|g|ta|market|ngcom ] referra| 70 199 2013 8S71 6S71
youtubecom ] referra| S7 112 1444 9649 9123
c||gs ] referra| 46 16S0 10S7 000 2826
not|fyb|uecoatcom ] referra| 40 48S 900 2000 4S00
ao| ] organ|c 28 136 1800 9643 78S7
denverssecretcom ] referra| 23 196 21S4 870 S6S2
webma||ao|com ] referra| 22 214 1410 9S4S S4SS
automot|veavenuescom ] referra| 20 16S 1424 9S00 7000
usmg2ma||yahoocom ] referra| 19 342 2244 7368 31S8
qq829com ] referra| 18 100 000 10000 10000
webhe|pqwestnet ] referra| 18 133 2000 9444 8889
|magesgoog|ecom ] referra| 1S 3S3 2224 8667 2000
dogp||ecom ] referra| 14 164 1S2S 78S7 6429
||nked|ncom ] referra| 13 292 2018 10000 61S4
usmg2ma||yahoocom ] referra| 19 342 2244 7368 31S8
qq829com ] referra| 18 100 000 10000 10000
webhe|pqwestnet ] referra| 18 133 2000 9444 8889
|magesgoog|ecom ] referra| 1S 3S3 2224 8667 2000
dogp||ecom ] referra| 14 164 1S2S 78S7 6429
||nked|ncom ] referra| 13 292 2018 10000 61S4
pagead2goog|esynd|cat|oncom ] referra| 12 100 000 10000 10000
searchmywebsearchcom ] referra| 11 218 210 7273 S4SS
search3comcastcom ] referra| 11 164 421 8182 8182
goog|eca ] referra| 10 140 1200 9000 7000
goog|ecouk ] referra| 10 120 712 10000 8000
pubadsgdoub|ec||cknet ] referra| 9 100 000 10000 10000
usmg1ma||yahoocom ] referra| 9 1S6 S20 8889 SSS6
ask ] organ|c 8 113 000 10000 87S0
usmg4ma||yahoocom ] referra| 8 22S 000 87S0 37S0
conso|emx|og|ccom ] referra| 7 100 000 8S71 10000
webma||attnet ] referra| 7 243 000 7143 28S7
co123wco|123ma||||vecom ] referra| 6 167 800 8333 6667
sn118wsnt118ma||||vecom ] referra| 6 1S0 800 S000 6667
goog|ede ] referra| S 100 000 4000 10000
n|ngcom ] referra| S 340 1424 10000 6000
se|||ng|roncom ] referra| S 860 936 10000 000
sz0087evma||comcastnet ] referra| S 720 1424 8000 2000
tw|tterfeed ] p|ngfm S 180 1424 10000 4000
forumsh|p|n|oncom ] referra| 4 100 000 10000 10000
goog|eco|n ] referra| 4 12S 1800 10000 7S00
goog|ecombr ] referra| 4 12S 600 10000 7S00
sn111wsnt111ma||||vecom ] referra| 4 300 1800 10000 2S00
sn133wsnt133ma||||vecom ] referra| 4 62S 1800 10000 S000
swagbuckscom ] referra| 4 27S 1800 10000 S000
sz0076evma||comcastnet ] referra| 4 22S 1800 10000 000
1ota|s 9780 21S 316 8060 S260
56
Ralph Paglia; 9
th
There is a group of professionals who argue that Social edia
RO can NOT be calculated. And there is an opposing group
that argues the point that Social edia arketing RO can,
and must be calculated. This article is based on the blog posts
and argument put forth by Dag Holmboe that Social edia RO
can be calculated. e will use Holmboe's logic, explanation
and recommended tools to describe and outline several
different ways of caIcuIating the SociaI edia ROI.
SociaI edia arketing - Debunking the ROI yth
5
Ralph Paglia; 9
th
Social edia arketing:
easurements to FinanciaI VaIues for ROI
59
Ralph Paglia; 9
th
SociaI edia arketing - ROI ategories
60
Ralph Paglia; 9
th
First up is Forrester's SociaI edia duo harIene Li and
Jeremiah Owyang. n 2007, Charlene and her team conducted
a study on the RO of blogging where they saw that it is fairly easy
to calculate the RO of blogging. They did not calculate a direct
profit based RO of their blogging campaign. nstead, 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 RO of blogging can be accurately determined.
61
Ralph Paglia; 9
th
Charlene quotes a Social edia arketing RO 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."
62
Ralph Paglia; 9
th
The following list supporting Social edia RO is from Bill
Johnston at Forum One. Bill has compiled a set of publicly
available data that are related to Social edia RO:
1. ommunity users remain customers 50% Ionger than non-
community users. (AT&T, 200)
2. ommunity users spend 5% more than non-community
users (EBay, 200)
3. ommunity users visit nine times more often than non-
community users (cKinsey, 2005).
. ommunity users have four times as many page views as
non-community users (cKinsey, 2005).
5. 56% percent of onIine community members Iog in once a
day or more (Annenberg, 2009)
63 Ralph Paglia; 9
th
Click to Zoom
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1 Ralph Paglia; 9
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2 Ralph Paglia; 9
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3 Ralph Paglia; 9
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Ads were seen ,201,33 times in October by
Facebook members who Iive near the two
deaIerships in this case study.
1,30 of those Facebook members cIicked on
one the two deaIer advertisements.
Since we spent $1,595.25 for the Facebook Ad
ampaigns, 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.
Ads were seen ,201,33 times in October by
Facebook members who Iive near the two
deaIerships in this case study.
1,30 of those Facebook members cIicked on
one the two deaIer advertisements.
Since we spent $1,595.25 for the Facebook Ad
ampaigns, 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.
Ralph Paglia; 9
th
First Days. First Days.
5 Ralph Paglia; 9
th
After 30 Days. After 30 Days.
6 Ralph Paglia; 9
th
After After 60 60 Days. Days.
Ralph Paglia; 9
th
istening to hat Customers are $aying
About your Dealership in the $ocial
media orld.
How do you do it?
How much does it Cost?
hat happens when something is Posted?
hat's the Value to your Dealership?
.ow do you easure the ROI?
9 Ralph Paglia; 9
th
RaIph RaIph PagIia PagIia
ADP ADP DigitaI arketing SoIutions DigitaI arketing SoIutions
raIph_pagIia@adp.com raIph_pagIia@adp.com
ceII ceII: : 505 505- -301 301- -6369 6369 www.DigitaIRaIph.com www.DigitaIRaIph.com
Presentation available at:
www.AutomotiveDigitaIarketing.com www.AutomotiveDigitaIarketing.com
or. or. AD.fm AD.fm
1. Join AD 1. Join AD
2. Go to 2. Go to AD Forum" AD Forum"
3. Use Search: 3. Use Search: Presentation FiIe Exchange" Presentation FiIe Exchange"
I want to thank for a great concept...
www.RaIphertising.com www.RaIphertising.com

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