What is the ROI on social media marketing?

Mark RogersCEO Market Sentinel

April 2009

• Market Sentinel founded 2004• Specialist reputation management and word of mouth

monitoring• Enables organisations to:

– Identify the topics and themes in online chatter that affect sales or reputation

– Identify sites and commentators which have influence over your brand

– Focus social media strategies to connect with your stakeholders

– Improve visibility in organic search– Measure outcomes from a campaign to prove ROI on

marketing and PR investment

Introduction

Some Customers

What is “social search” and why does it matter?

Search is brand

• This is how searchers’ eyes move on the page• Organic search dominates the “golden triangle”• 75% of searchers are buyers (GVU/Georgia Inst)

Social search is not just del.icio.us … it’s Google!

• Search ranking is determined by “relevant”, contextual links, giving authority by link and linker

• This makes conversational networks extremely important, giving influencer to those who are talking about a topic

• A brand may be part of that conversation, but the conversation is not bounded by the brand

Top ten results “top broadband speed” Google UK

How does a brand identify and join relevant conversations?

Monitor sentiment: because advocacy works …

What does it look like?

Identify influencers: they can teach you about your brand

• Social network analysis• Construct a network around the topic• Crawling around a search phrase• Following all links, until context is lost• Perform citation indexing• High score = relevance = authority = influence about differing levels of "connectedness" or authority?• Method predicts offline influence

US DoD study on Persia, Israeli study on Defence spending

What are the characteristics of influencers?

• Not what you would expect ... "bloggers"• Tend to be connected "sources"• Directories, databases, charities• Approaching them requires different methodologies- via existing networks, through existing promoters- neutrally, through tailored content- through opt-in offers-"cold“• Profiling is vital

It always goes to the product

• What are the key strengths of your product?• How do they relate to the themes of the commentary you have identified?• What are the things that differentiate you and which drive positive word of mouth?• Pick one of the themes which goes to the heart of your product

Results: Stakeholder MapHot HatchBack

Strategy: action first, then comms

How does this apply to a campaign?

• Has my NPI moved in response to my campaign - +ively?• Has my NPI moved in response to my actions (e.g. in

customer service)?• Can I trace other responses?• What new topics are driving conversation, how can I respond?• Finally, what is the outcome of the campaign relative to a

campaign with no WoM element?• P&G claim uplift of 10%. • Travel companies report 26%-42% uplift on clickthroughs in

paid search

Evidence of ROI: Avis

Flood the networkCase study H&R Block: online tax returns

How it was done

• “Communicate through content”• Content customised for channels • Demographics less important than psychographics “I just want my tax refund now”• 5% of digital spend• 0.5% of total ad spend• Own community website digits.hrblock.com, SecondLife, YouTube (+ video syndication), Twitter, MySpace, Facebook, widgets

How it was done

• TaxTools, product information, edutainment• Assets created and reused• Late changes to tax system – interest in tax news drove traffic to blog• H & R Block grow awareness 52%• 11% growth in tax services business, feeding net income rose to $544m from an $86m loss the previous year

• Cadbury were considering a microsite reviewing the option of bringing back the bar and canvassing opinion

• We established that there was already a huge and growing demand for the return of the Wispa

Just listen and actCase study – Cadbury: Wispa

• Cadbury shunned a “marketing” approach, but brought the bar back

• Then explained why …• 23 million bars sold in the initial launch and now >80

million – outselling all other chocolate bars 2:1• Reintroduction now permanent. Marathon and Opal Fruits

have launched copy cat campaign

Cadbury: Wispa

• Can you give your customers a reason to talk about you?

Start a conversationCase study: Cadbury Dairy Milk

• What is being talked about? The ad or the product?

But beware …

Recap: what are you looking for from social media marketing

• “Buzz” or share of voice = social currency• Growth in participation, engagement• Advocacy: “Net Promoters”• Growth in Net Promoters around key issues that go to the heart of your brand• Decline in negative word of mouth on key topics that create “noise” (customer service, CSR)• Growth in influence on key topics that define your difference• Decline in customer service expenses• Growth in sales!

Contact• simon.rogers AT marketsentinel.com • +44 20 7793 1575 (t); +44 7977 001372 (m)