brand vs performance in social media return on investment
DESCRIPTION
Dialogue Consulting director Hugh Stephens spoke at the 2nd annual Social Media in Government conference on 17th Feb 2014 in Canberra, Australia about how to measure social media return on investment (ROI) and the role of brand activities compared to performance activities.TRANSCRIPT
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12 Apr 2023
Increasing social media ROI:Brand vs Performance
@HughStephensToday’s slides are available at:
#AkoSMG14
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• Strategy– Communications– Social data– Digital channel integration
• Risk– Active / passive management– Review– Analytics
• Advisory– Analytics
• Audits• Trend analytics• ROI
About Dialogue Consulting
Strategy // Risk // Advisory
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• ROI review• Brand and performance• Data > tools• What to do about it– Evaluation periods / Audit– Interim monitoring–Make it part of planning
Agenda
Questions & Tangents always welcome!
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√Σπμ (!!!11!!
1!)
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ROI: A rapid review.
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You can measure anything.
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How ROI is defined mathematically
ROI is the balance between costs and revenues
• To increase ROI:– Decrease costs (!!)– Increase revenues/return
• Or simply: – Bang for your buck.
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Adapted from Larson & Watson, 2011
What are your Value
drivers?
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• Social media costs more than most people think.• Key areas are:– Staff hours / resources– Training / education– Advertising (?pay to play)– Tools / management platforms– Technology / devices– (Evil) consultants
Costs of social
You probably don’t know the true costs of social.
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• eCommerce would be (is) a great place to be, but government ≠ eCommerce.
• Common models– Business strategy execution (‘them’ vs ‘you’)– “Value of a Follower” – net present value through
discounting future returns (via user lifetime value)– Network analysis (‘them’ vs ‘them’)– Opportunity cost valuation
• Compared to display ads?• Compared to telemarketing?• Compared to …?
Revenues of social
You can identify the ‘revenue’ in many different ways
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Number line
0
$$$$$$
$
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Brand vs Performance
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It all starts with strategy.
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It’s impossible to measure something you don’t understand
A problem well stated is a problem half solved.- Charles Kettering
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• ‘Brand’ activities are:– Usually long(er)-term– Usually related to equity, but can be internal
(risk)• ‘Performance’ metrics are:– Usually directly related to something– Often relate to a business strategy– Can be tangible (sales) or intangible
(diversions for CS)– Usually easier to measure
Defining ‘brand’ and ‘performance’
Are you focused on ‘brand’ or ‘performance’? (or ‘KPI’?)
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Quantifying use
SMROI helps identify where social media generates value
• Financial tangibility – is the return monetary (eg sales) or non-monetary (eg brand equity)?
• Time – is the return made in the long or short term?
p8
“Performance” “Brand”
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Data > tools3
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• Most tools simplify things to the point of worthlessness– “Likes” }– “Virality” } Are these ‘ROI’? No. Do they drive
it? Nope.– “Engagement” }
• Don’t create a Klout small clean data > big dirty data, models require some expertise
• What are you trying to measure?– Market research (formal/informal, social/nonsocial)– Analytics (FB/TW/GA/Omniture)
• Often require planning (URL shortening?)– Outcome metrics (call volumes/sales/leads)
• Focus on the data, not the tool.
Measuring your ROI
“Likes”, “Virality” or “Engagement” is not ROI.
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Identifying what works is harder than just a tool.
• Data collection– Volume data is easy to get– None of the ‘ready-made’ tools probably understand your
strategy– Detailed data much harder (Python , R )
• http://dry-atoll-9855.herokuapp.com/ -- ~40 mins.• Benchmark tools
– NPS– Consumer surveys
• Yours• Market
– Competitor analytics• Be weary of market drivers
There are some handy tools though…
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• Engagement can be a proxy for?• Clickthroughs can be a proxy for?• Enquiries can be a proxy for?• But proxies have limitations when
you extrapolate.
Proxy measurements
We use proxies when we can’t measure real numbers
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What to do?4
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• Go back to your strategy – what are you really trying to measure?– Brand or performance?– Short or long-term?
• Identify what data you have, and what you’d like to collect.• When can you do what?
– What would you love to have access to if you had the time and budget?• What is a proxy for ^?
– What is a proxy for ^?» What is a proxy for ^?
– Rolling analytics are great, but sometimes you have to do a ‘deep dive’
• ROI your ROI… (#meta)• Focus on the value drivers…
Work out what you can and can’t measure
Where to get started
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Dialogue recommends...
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Identify and understand your strategic purposes of
maintaining a social media presence
Recommendation 1
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Recommendation 2
Social media presences should be evaluated regularly.
Social media use should be justified, cost-effective and add
value.
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Recommendation 3
SMROI should be evaluated and help direct improvements to
better extract value from social media.
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Recommendation 4
SMROI should be undertaken carefully to ensure models, metrics and calculations are
accurate.
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Recommendation 5
To be valid and accurate, ROI models should remain fluid to reflect
changes in social media platforms, uses and users.
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Questions?