RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm
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Transcript of RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm
![Page 1: RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm](https://reader033.fdocuments.in/reader033/viewer/2022052823/555659d8d8b42aa41e8b515a/html5/thumbnails/1.jpg)
@maheshmurthy
Measuring RoI & effectiveness
in social media marketing
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@maheshmurthy
Return On Investment can be said to come from Relevance, Originality, Impact
But that’s not precisely measurable.
Need better metrics.
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@maheshmurthy
12 minutes.
12 metrics to live by.
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@maheshmurthy
HOW LOW IS YOUR AD-SPEND-TO-REVENUE
RATIO? TO BECOME BIG, SPEND LESS.
1
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@maheshmurthy
Interbrand’s ‘Top 100 brands 2012’
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@maheshmurthy
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@maheshmurthy
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@maheshmurthy
Interbrand’s ‚Top 100 brands 2012‛
1/3rd seem to have been built without
too much spend on media buying.
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@maheshmurthy
This list doesn’t even include Red Bull, Twitter, Ferrari, Facebook. The zero-ad-budget champions.
It’s back to the age of extreme word-of
mouth
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@maheshmurthy
Increasingly, in more sectors, the winner has the best word of mouth. And correspondingly, the lowest ad spend.
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@maheshmurthy
HOW FAST CAN YOU DIE?
WINNER BRANDS HAVE TO THINK ANTI-FRAGILE.
2
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@maheshmurthy
$300m brand, built over 15 years.
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@maheshmurthy
$300m brand, built over 15 years. Destroyed in 15 hours.
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@maheshmurthy
$50b brand, built over 150 years. Gone in a weekend.
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@maheshmurthy
Let’s say a can of Axe deodorant was found with a cockroach in it. And a can of Gillette deodorant too was found with a cockroach in it.
I believe Gillette would be harder affected because
it’s the one making higher claims of greatness.
‚The holier-than-thou, the harder-thy-fall.‛
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@maheshmurthy
Let’s say there was a similar service issue (stewardess makes out with passenger on flight) on Singapore Airlines and on Virgin.
I believe Singapore Airlines would be much harder
hit.
‚The holier-than-thou, the harder-thy-fall.‛
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@maheshmurthy
Your longevity is increased if you don’t claim perfection. The more risk you embrace in your brand personality, the more resilience to black swans you’ll gain.
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@maheshmurthy
WHAT IS YOUR CONTENT-COST-TO-COVERAGE
RATIO?
WINNER BRANDS WILL CUT OUT THE MIDDLEMEN
BETWEEN THEM AND CONSUMERS.
3
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@maheshmurthy
Old way: Brand Research firm Strategy firm
Creative agency Media agency Media house
Media property Editorial / Entertainment
Inserted advertising Consumer
Loss of fidelity, efficiency at each level
New way: Brand Editorial / Entertainment Consumer
Minimal loss of fidelity. Max efficiency.
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@maheshmurthy
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@maheshmurthy
Red Bull had 5x the global search volume of Coca Cola during the stunt. And settled down at a level higher than
Pepsi.
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@maheshmurthy
The brand is the entertainment. Media may even pay to cover the brand. No ad film was produced. No media buy was executed. $500m+ worth of publicity on ~$15m worth of investment. 30x
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@maheshmurthy
HOW SOON WILL YOUR SOCIAL NETWORK DIE?
WINNER BRANDS WILL BUILD NETWORK-NEUTRAL
PRESENCE.
4
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@maheshmurthy
Social networks typically have a lifecycle
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@maheshmurthy
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@maheshmurthy
When & how brands should participate
Watch
Exploit & grow
Maintain & Consolidate
Prepare to exit & migrate
Wait
Try
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@maheshmurthy
Facebook seems to have begun its decline in the US already. It will also die one day. What happens to your investment and fans there? They’re not portable.
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@maheshmurthy
Instead of building content on a social network, build it on your site – Use ‚f-connect‛ and other such buttons – and embed it on networks from your site You should own your fans. Not Facebook. Be network-neutral.
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@maheshmurthy
WHAT IS YOUR SHARE OF TRAFFIC FROM SOCIAL?
OVER 50%?
5
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@maheshmurthy
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@maheshmurthy
India’s #3 sports site 5m pageviews a month generated socially from 3.5m Facebook fans. At zero media cost
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@maheshmurthy
WHAT IS YOUR SHARE OF SALES FROM SOCIAL?
OVER 50%?
6
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@maheshmurthy
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@maheshmurthy
$1m annual sales. Generated almost exclusively from Facebook. At zero media cost.
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@maheshmurthy
HOW SOON BEFORE FACEBOOK BECOMES YAHOO
WITH SMALLER ADS?
AND TAKES ITS VIRAL VISIBILITY TO ZERO?
7
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@maheshmurthy
Edge rank: updates reach virtually no one, really.
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@maheshmurthy
80%
16%
12%
2012 2013
Typical / max organic visibility of your Facebook update across your fan base
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@maheshmurthy
Typically, less than 1% of your fan base actually is shown your update (unless you pay to promote). 99% won’t get it. At best, about 12% of your fan base will get to see it.
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@maheshmurthy
Facebook squelched organic ‛free‛ visibility to boost short-term revenues to kick-up stock price. Every time Facebook needs revenues, it’ll damp virality further. When will virality go to zero – and you start comparing Facebook with Yahoo, where visibility is 100% fee-dependent?
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@maheshmurthy
WHAT ARE THE ONLY FACEBOOK STATS THAT
MATTER?
VIRALITY AND ENGAGEMENT
8
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@maheshmurthy
Out of a boatload of Facebook analytics…
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@maheshmurthy
Two really matter – and Facebook doesn’t compute those. But you can: Relative virality: How many non-fans get to organically see updates
divided by total number of fans
i.e. how viral did it go?
Viral attraction: How many non-fans become fans as a result of
seeing updates organically, divided by total number of non-fans who saw the updates.
i.e. how compelling was the virality?
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@maheshmurthy
Relative virality – the higher, the better. Aim for 2%+ daily
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@maheshmurthy
Viral attraction – the lower, the better. Aim for <50
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@maheshmurthy
Then measure engagement
Not as PTAT (people talking about this)
which is a useless number.
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@maheshmurthy
Engagement Type Metric Norm
E1: Unprompted Posts / fan base 0.05% | 50
E2: Prompted Comments / fan base 0.5% | 500
E3: Passive Likes / fan base 2.5% | 2500 E4: Referral Shares / fan base 0.5% | 500
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@maheshmurthy
And compare against sectoral peers –
also TG peer brands.
Which you can measure externally, with
no account access
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@maheshmurthy
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@maheshmurthy
HOW DO YOU IDENTIFY AND TRACK INFLUENCERS?
WITH KLOUT, PEER INDEX AND KRED.
9
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@maheshmurthy
Pinstorm tracks over 6,000 influencers in India alone everyday, sorted by TGs & topics
http://pinstorm.com/ii
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@maheshmurthy
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@maheshmurthy
![Page 53: RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm](https://reader033.fdocuments.in/reader033/viewer/2022052823/555659d8d8b42aa41e8b515a/html5/thumbnails/53.jpg)
@maheshmurthy
HOW QUICKLY CAN YOU PICK UP BUZZ ABOUT YOUR
BRAND AND DEAL WITH IT?
WITHIN 4 HOURS? 7 DAYS A WEEK?
10
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@maheshmurthy
Per brand: 1,000 to 15,000+ social mentions per day 80% outside office hours. Need to work in shifts, 7 days a week.
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@maheshmurthy
Quick sorting and data visualisation
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@maheshmurthy
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@maheshmurthy
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@maheshmurthy
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@maheshmurthy
Instant client notifications on mobile. SLA of ~4 hours for responses at scale.
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@maheshmurthy
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@maheshmurthy
WHAT IS THE VALUE OF YOUR SOCIAL BUZZ?
RELATIVE TO YOURSELF?
RELATIVE TO COMPETITION?
11
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@maheshmurthy
Tracking competitive sentiment
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@maheshmurthy
35
39 39
65 66
60
63 63
72
65
60
93
84
78 78
74
69
65 65
71 71
65
61 61
35 34
40
37 37
28
35
40
7
16
22 22
26
31
35 35
29 29
0
10
20
30
40
50
60
70
80
90
100
Positive
Negative
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@maheshmurthy
Valuing sentiment
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@maheshmurthy
Pinstorm has an SLA for $15m in value of non-negative publicity to be generated through online reputation management for one client.
Value apportioned with equivalent CPM
rate for ad spot in medium, with 1:1
editorial to ad valuation
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@maheshmurthy
WHAT ARE YOUR VIDEO VIRALITY AND COST
METRICS?
THIS IS THE NEXT BIG FRONTIER.
12
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@maheshmurthy
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@maheshmurthy
Over 2.5m views generated on one film alone. TV-competitive cost per view 67:33 mix of paid and organic.
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@maheshmurthy
The 100x revolution in production.
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@maheshmurthy
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@maheshmurthy
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@maheshmurthy
Cost of broadcast quality commercials down from US$250,000 to US$2,500. 100x improvement already. True break-even will come at US$25, when the film can make its own cost back thru ads on 10,000 views. So, further 100x improvement needed
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@maheshmurthy
12 minutes.
12 metrics to live by.