While I’m posting about Social Media ROI, I thought it would be pretty relevant to show this great slideshare presentation by Olivier Blanchard on the Basics Of Social Media ROI. Put simply, trying to measure a direct ROI on your Social Media spend is very hard and almost nobody can put their hand up to say they are measuring it all. But, turn on that common sense button and your already half way there! Enjoy the presentation!
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November 18th, 2009 at 9:50 pm
Haha nice one Aden!
Informative and Funny is hard to do, but definitely achieved through this presentation. Nice Find. I like the metrics that it identifies, and gives more substantial evidence for funding social media, than trying to argue the usual ‘brand awareness’ that get’s bandied around.
November 20th, 2009 at 7:27 am
Great post. Proving ROI has been an obstacle for many in the B2B space and especially in the investor relations space. For investor relations in particular, in addition to trying to tie back to trading volume and share price appreciation (very difficult to do), you can include non-financial ROI measurements, such as followers, mentions, views, etc. I just finished a blog post that ties in nicely with the subject – using social media to broaden the reach of your investor presentation. Here is a link: http://bit.ly/3VS71C Let me know what you think.
November 23rd, 2009 at 1:05 am
Thanks for posting, Aden. With old tv stills and graphic presentation, I totally get it.
November 23rd, 2009 at 5:48 am
Great job of communicating the importance and challenges of measuring ROI in an engaging and entertaining way! Really well done.
This preso does a good job of highlighting the challenges of identifying how a SM program can impact the business and defining KPIs to measure the impact. Conceptually it all makes sense but it’s important to note that a baseline trending methodology can be impacted by seasonality, macroeconomic factors, as well as the absence or occurrence of other advertising and marketing initiatives. In a down market like we’ve had these past 12 months, the overall trends on traffic and commerce have been mostly negative. You could be doing a great job of social media marketing (and thereby lessening the decline), but still see an overall downward trend. The opposite is true if you are launching new initiatives that create brand awareness. So you have to be careful when comparing results to historic figures.
Isolating the impact is a challenge. I can think of 2 ways to isolate and measure the impact of SM marketing from other factors that impact performance (seasonality, macro trends and other campaigns):
1. market testing (focus on specific geos and measure against a control group)
2. surveying customers who took a desired action (find out if those who buy are influenced by your social media efforts).
Given the increasing fragmentation of media, it’s only going to become more difficult to isolate impact and measure ROI. I wish there was a silver bullet but I believe this is a challenge that is here to stay.
Again, great work (wish I had your creative skillz)! Would greatly appreciate your feedback on my presentation The Business Case for Social Media: http://bit.ly/lEB4b
Steve Latham
Spur Interactive
http://twitter.com/stevelatham
November 23rd, 2009 at 8:40 am
Excellent! It’s what we in the PR industry have had to do for decades – proving the link between market and media activity and how it eventually translates into sales.
New words, new tools, same issues…….
Thanks for sharing.
November 24th, 2009 at 5:55 am
Hi
This is a great presentation – it has given me some ideas for the ROI links for corporate social responsibility, which generally can be difficult to pin down.
Thanks
December 15th, 2009 at 1:28 pm
Really interesting and clear presentation. Some good ideas to implement.
Thanks
December 16th, 2009 at 8:54 am
Nice summary Aden. We are extending the strategy to include cloud based tools which make the hard connection from SMM to sales via CRM.
CEO’s, VP Sales, Marketing, PR, Ad people can’t argue with this approach- in fact as described by Altimeter, we can tip the silos between departments to increase SM efficiencies. ROI is organic and measurable in real time- very cool.
Be glad to send you more info to cover in your blog. We are pre launch right now. Shhh for now.
Craig
December 16th, 2009 at 9:17 am
Thanks Olivier,
Appreciate your presentation – frankly the best communication on the subject I have seen. Thanks, John