goodness in sharing…

Little social media ROI roundup

12.03.2007 · Posted in Social Media

Another post escapes my agency firewall (I blog several places)

Several people have been asking/chatting about Social Media ROI lately so I thought I would pull together some quick stats and links on the topic. To sum up, nobody has really broken the code and has been able to equate a number (impressions…yuck) to Social Media or WOM. And honestly, how could you/why should you.

I’m not sure I want to know a X value on my friendship and what we talk about. More so to the point, the age of conversation and how we measure don’t fit the old paradigms. Impressions, page views, etc are all built on a broadcast reach/frequency paradigm. For social media and WOM, we need to start thinking in what a conversation/engagement really mean to us (marketers/company/brand) and what that means to a consumer (real people). But here are some links to get going on the topic.

Online Communities and ROI

From a recent Online Community Business Forum, Joe Cothrel and Bill Johnston presented Online Community ROI

Community users remain customers 50% longer than non-community users. (AT&T, 2002)
- 43% of support forums visits are in lieu of opening up a support case. (Cisco, 2004).
- Community users spend 54% more than non-community users (EBay, 2006)
- In customer support, live interaction costs 87% more per transaction on average than forums and other web self-service options. (ASP, 2002)
- Cost per interaction in customers support averages $12 via the contact center versus $0.25 via self-service options. (Forrester, 2006)
- Community users visit nine times more often than non-community users (McKInsey, 2000).
- Community users have four times as many page views as non-community users (McKInsey, 2000).
- 56% percent of online community members log in once a day or more (Annenberg, 2007)
- Customers report good experiences in forums more than twice as often as they do via calls or mail. (Jupiter, 2006)

From the Forum One OC ROI Survey (April 2007):
- Only 22% of respondents had clear ROI Model
- 42% had staff of 1-5 people
- 49% Report Monthly to Mgmt
- Establishing ROI Model was a priority for most respondents in the near term

Blogging ROI

Forrester has an ROI of blogging report...might be good to track down.

Marketing ROI: Whims from Ron Shevlin has a great post digging the report. From his post -

GM’s first-year ROI on the blog was 99%. The primary contributors to the top line: 1) $180,000 in customer insight, which was estimated by assuming a cost of $15,000 for running a monthly focus group with 10 participants over the course of a year, and 2) $380,000 in press coverage, calculated by estimating the value of “high-visibility Web placements” and the cost of CPM advertising on sites like InformationWeek.

Social Media ROI

From the blogosphere, some must read on the topic -

Connie Bensen My Conversation Blog – was tagged in an ongoing pass along ROI discussion. Her post digs into both quantitative and qualitative variables on ROI measurement.

Rohit Barghava Influential Marketing Blog Guest Post: Is Word of Mouth a Discipline or Just a Channel? – Tackles some core issues of WOM

Brains on Fire“As the engagement and involvement of your community – your passionate fans – increases, the less money you need” Awesome!

Conversation Agent ROI = Return on Involvement This is required reading!
Update: fixed Conversation Agent link. And here is another suggested link from Conversation Agent – Measurement and ROI for Social Media
(thanks Valeria for stopping by!!!)

Hate on Facebook

11.29.2007 · Posted in Social Media

Just a quick note. Seems there has been some unrest in the blogosphere over Facebook. A bit disturbing to me as well.

First off is Cory Doctorow post on How Your Creepy Ex-Co-Workers Will Kill Facebook. It touches on something I felt for awhile. Do I HAVE to friend you? Even if we are just work mutual friends? It worth the read and a good think.

Next up is Facebook’s Beacon. Matt Dickman does an excellent job breaking down what Beacon is and why it matters to marketers. I had been noticing this when somehow magically Facebook posted some recipes from epicurious.com. I didn’t notice it at first, but then it got kind of creepy. The Idea Shower (which I’m adding this blog to a regular reading list) does a great job explaining the situations behind Beacon and privacy issues.

Thing is, I agree with what these post share. Facebook is kind of overstepping its bounds for my taste. The ad guy in me wants data shared, really. But within good taste. On top of that, while I like Facebook, it really just doesn’t do it for me. I’m glad its there, but I kind of want to keep it at arms reach. I mean, I like being able to keep up with my friends. But…I kind of like being able to disappear from the social scenes every now and then as well.

Latest advertising death: Campaign Microsite

11.13.2007 · Posted in Sharing the experience

(This post sneaks out from behind my agency’s blogwall)

The latest article from Adweek Magazine, Is Social Media Killing the Campaign Microsite?, questions the death of the Campaign Microsite. Adweek likens this to the death of the 30-sec spot discussion from several years (or wait, months ago?), but instead of media fragmentation killing the :30, its social media killing the microsite.

Now, lets step aside the B.S.O.S hysteria (bright and shinny object syndrome, see slide #10) for just a second and get into the guts of the article. This is still about media fragmentation and consumers wanting control…just in the online space. Consumer go and find and use content, including brand content, how they want. So trying to create a site and just drive them there…may not be the answer. As Carol Kruse, vp of global interactive marketing at Coca-Cola points out in the article “fish where the fish are” – if you consumers are into social media, get there…which means, widgets, Facebook, etc. So this isn’t about killing the microsite, but understanding the functionality of content for consumers. We need to focus on creating brand that consumers can use increasing the functionality and experiencability, less about driving consumers (people) to a place.

And it’s not just the Adweek article that is discussing this idea. From the latest ad:tech conference the panel ‘Appointment Marketing, Consumers Check In‘ discuss emerging audiences and how to follow them. A couple of interesting points came out of the panel.

First – that consumers are choosing where and when to engage online (media fragmentation), so when need to start understanding what roles of engagement a brand should play.

Second – start thinking about a better understanding of what to deliver to for the consumer will help with both engagement and ROI. Both types of ROI – Return on Investment and Return on Involvement (this gets into a larger discussion on audience back planning…will save that for another day).

Third – maybe, just maybe what media fragmentation has done is forced a new/better/return to a different understanding of advertising and brand/branding; what is the function on the brand idea.

While the Adweek article doesn’t specifically touch on this…it does start to elude to it. That it really is about the consumer experience, what the consumer takes away – which some would argue equals brand. So it is about the brand idea reaching people, with out the worries of the specific media (media fragmentation…again). The adliterate even goes one step further and throws out the idea that branding may be shackling advertising, because advertising is built on specific forms of communication ideas (traditionally) and that the digital space removes those binding forms and allows for the brand idea to engage in any way it wants…helping kill the idea that everything should just be about the microsite.

Now, in all fairness – the microsite doesn’t completely go away. The key is understanding what function consumers want with content and how the brand idea enhances their experience. How a microsite could help pull all of that together.

Your two cents? Add a comment…