1. THE ROI OF SOCIAL MARKETING SOCIAL BAKERS: SOCIAL INSIGHTS 11 August, 2014

2. 01 WHO WE ARE 3. FACTS Founded in 1992, VML became part of WPP Group in 2001. VML delivers creative solutions at the intersection of marketing and technology. We now have more than 2,000 VMLers around the world that service more than 150 client partners. 4. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 4 Who am I? @piotrj 1st bule baby born at Pondok Indah Hospital Lived in Jakarta, Des Moines, Tokyo, New York, Chicago, Jakarta Travel & Wedding Photographer Fascinated with the growth of Digital in Indonesia 5. 02 Why do we need Social Media? 6. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 6 Since the early 2000s, marketers have identified that we are in the Relationship Era, where Marketing is focusing on fostering sustainable relationships. Social Media plays one of the most important roles in this process, due to its ease of use, access and convenience. We are in the Relationship Era 7. There is no way to switch off the Internet 8. 8 In the Relationship Era, brands live in a glass house now more than ever do people have access to all information about a brands behavior. So dont be a d#$*& - Bob Garfield, Author Cant Buy Me Like 9. 9 10. 10 REALITY: Brand owners dont really own the brand. Consumers do. 11. 03 ROI of Social Marketing 12. 12 Before you answer the question, What is the ROI? We need to ask ourselves: What is the Business Objective? 13. Brand Risk Management Financial Digital 14. Measure improved response rates with social-enabled commerce Measure improvements in average consumer spend and share of wallet Measure costs eliminated Media mix modeling to validate brand impact in the social channel Brand Risk Management Digital 15. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 15 Mentions in the digital sphere are directly connected to sales. This is primarily related to the fact that people trust other people online more than brands. Online Chatter Drives Sales 16. 16 17. The same tried and true surveying methodologies used to measure brand lift in traditional media also work in social media Awareness, purchase intent, preference, brand association, or other measures of long-term brand health Risk Management Financial Digital 18. 18 19. Social media delivers not just financial, brand, and digital results but also creates an asset the organization can use when challenges arise This perspective is not about creating positive ROI but reducing unforeseen negative ROI in the future BrandFinancial Digital 20. Social media delivers not just financial, brand, and digital results but also creates an asset the organization can use when challenges arise This perspective is not about creating positive ROI but reducing unforeseen negative ROI in the future BrandFinancial Digital 21. 10% drop in share price?!? Was it the only reason? Probably not. Did it contribute? Absolutely! Source: http://www.fastcompany.com/1320152/broke n-guitar-has-united-playing-blues-tune-180- million 22. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 23 Upon getting fired from the company HMV Community Managers, still having access to the accounts, started live- tweeting about the event. Social Media: #Fail 23. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 24 The VP of Ketchum (a US brand) tweeted that he would die if he had to live in Memphis a few hours before his meeting with FedEx at their headquartersin Memphis. Social Media: #Fail 24. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 25 Through listening and quick response, Skype was able to address crisis situations by creating content and responding to it in a timely manner The brand found articles with negative connotations, responded with a blog post and proceeded to comment on all negative content with a link to this response post. Social Media: #WIN 25. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 26 REALITY: When a brand has a social media #fail, consumers WILL spread it. 26. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 27 REALITY: Theres a troll in each and every one of us. (Especially when unsatisfied with a product or service) 27. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 29 The backlash was unprecedented, and the Internet exploded with negative feedback. Among others, a famous Mexican- born actor had tweeted, to his 2 MILLION fans. Social Media: #FAIL 28. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 30 Within days the brand had responded with blog posts in English and Spanish to apologize for the incident. Social Media: #FAIL Apology 29. SOCIAL BAKERS | SOCIAL INSIGHTS JAKARTA 31 A customer became so angry with British Airways that he purchased a Promoted Tweet to make sure that thousands of people saw how angry he was. What? People are buying promoted tweets to complain? Social Media: #FAIL 30. Measure social media programs impact on search engine relevance Measure traffic to and beside owned media to track all brand touchpoints Measure short-term metrics when your objectives are short term Brand Risk Management Financial 31. 33 32. LISTEN ENGAGE MEASURE OPTIMIZE REPEAT. 33. THANK YOU