NCM20Group Hyundai SocialMediaROI v2

8/7/2019 NCM20Group Hyundai SocialMediaROI v2

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Ralph Paglia; Automotive Digital Marketing Professional CommunityAutomotive Digital Marketing Professional Community @ www.ADMPC.comwww.ADMPC.com

Learn to debunk many of the fallacies surroundingsocial media by applying measurement and trackingsystems to eliminate mysteries surrounding social

media marketing and reputation management ROI. Despite a never-ending supply of new social media

sites such as Facebook, YouTube, Twitter, Google,DealerRater and hundreds of others, there has beenlittle effort to supply dealers with tools to measure

and report results. Yet, dealers are being inundated with various spins onsocial/digital media made during new vendor pitches for dealer dollars.

Much like the 18th century question, "How many angels can dance on thehead of a pin?" too many social media pundits dance around each dealerinquiry concerning tracking, results measurement and ROI analysis

Measuring Results from Social MediaMeasuring Results from Social MediaReputation Management InvestmentsReputation Management InvestmentsMeasuring Results from Social MediaMeasuring Results from Social MediaReputation Management InvestmentsReputation Management Investments

How do you get past social media gurus responding to ROI questions

by dancing around objective measurements used in ROI analysis forsocial media marketing initiatives


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DirectorDirector -- DigitalDigital Marketing SolutionsMarketing Solutions

DealerDealer ServicesServices Designedsolution, built prototypes and created ADP/ASU

Joint Venture at www.SkySongCenter.com in Scottsdale for2010 launch of ADP Social Media Reputation ManagementOperations Center providing Strategic Implementation ofprofessionally managed Social Media Marketing forDealers...

Generated 144,000+ leads in 22 months while working for Courtesy Chevrolet

Managed Courtesy Chevy Internet Sales team that sold 4,000+ Units in 2006

Worked w/Ford in 2007-2009 todevelop first fully integratedmulti-publisherTier 3 Digital Marketing Consulting and Co-Op supported Advertising program

Ran 1st retail automotive Behavioral Targeting Digital Advertising program

Developed concept, created 1st Dealer Microsite strategy/campaigns in 2001/2002

Internet Sales and Marketing Consultant to Ford, Mercedes-Benz, GM,Honda, Toyota, Mercedes-Benz, Hyundai, Kia, Mazda and 250+ dealers/groups

Pioneereddevelopment of Internet Leads 1986-1988 using CompuServe ISP accessto post new/usedvehicle listingson defense contractor BBSs in San Diego, CA

Introduction and Background:

Ralph PagliaRalph Paglia

Cell: 505.301.6369 [email protected] www.RalphPaglia.comRalphPaglia.com

www.ADMPC.comwww.ADMPC.comwww.ADMPC.comwww.ADMPC.com


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Join the social media revolution!Join the social media revolution!


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Return On Investment (ROI):A performance measure used to evaluate the efficiency of an investment or tocompare the efficiency of a number of different investments. To calculate ROI,the benefit (return) of an investment is divided by the cost of the investment;the result is expressed as a percentage or a ratio.Keep in mind that the calculation for return on investment and, therefore thedefinition, can be modified to suit the situation -it all depends on what youinclude as returns and costs. The definition of the term in the broadest sensejust attempts to measure the profitability of an investment and, as such, there

is no one right calculation.For example, a marketer may compare two different products by dividingthe revenue that each product has generated by its respective marketingexpenses. A financial analyst, however, may compare the same two productsusing an entirely different ROI calculation, perhaps by dividing the net incomeof an investment by the total value of all resources that have been employed tomake and sell the product.This flexibility has a downside, as ROI calculations can be easily manipulated tosuit the users purposes, and the result can be expressed in many differentways. When using this metric, make sure you understand what inputs arebeing used.


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Social Media:

Social Media is media designed to be disseminated through socialinteraction, created using highly accessible and scalable

publishing techniques. Social media uses Internet and web-basedtechnologies to transform broadcast media monologues (one tomany) into social media dialogues (many to many). It supportsthe democratization of knowledge and information, transforming

people from content consumers into content producers.Andreas Kaplan and Michael Haenlein define social media as agroup of Internet-based applications that build on the ideologicaland technological foundations of Web 2.0, and that allow thecreation and exchange of user-generated content. Businesses also

refer to social media as user-generated content (UGC) orconsumer-generated media (CGM).

Social media utilization is believed to be a driving factor in theidea that the current period in time will be defined as the

Attention Age.


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7Ralph Paglia; [email protected] www.RalphPaglia.com www.ADMPC.comwww.ADMPC.com

Forresters ROI methodology

CostsCosts(Impact on budget)(Impact on budget)

BenefitsBenefits(Impact on business)(Impact on business)

FlexibilityFlexibility(OptionsOptions)

RR

IISSKK

TotalTotal

EconomicEconomicImpactImpact

Uncertainty Impact of assumptions

Benefits Quantified value Definedmetrics

ptions create Are t ere newopportunities in t e future?

Cost People Process Tec nology


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BenefitsBenefits(Impact on business)(Impact on business)

Examples of Benefits

Cost savings

Reduce call volume

Reduceemail volume

Increase BDC productivity

Increase in FCR

Reduce SEO costs

Profit Improvements

Increase customer lifetimevalue

Increase Sales Ideation

Increase Lead Conversion Rates

Source:

May, 2009 The ROI of Online Customer Communities Forrester report


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There aremany benefitsof

Online Dealer Communities

Source: The ROI of Online Customer Communities Forrester


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Social Media Results Known = DealerSocial Media Results Known = Dealer ROIROI

1. Marketing Communications: Create and Publish content that attracts

consumers within demographics targeted by social media marketingstrategy. Use Social Apps toengage/interact/convert.

2. Reputation Management:A. Monitorsocial web for content posted containing dealership brand.

B. 911 Fast Response Strategy and Process for negative content posted. Notifydealer POCs of what was posted, when and by who. Send POC copy,

including response published and actions/duedates requiredC. Social Rewards strategy for positive posts, comments andmentions

D. Promptly create and post appropriate responses to all dealership mentions sopeoplesee yourstore cares, pays attention, responds, appreciatescompliments and resolves customer concern issues

3. Traffic Generation: Use anchor text and linked content todrivetargeted traffic fromsocial media sites intodealerssocial assets andwebsites, incoming phone calls tosocial media assigned numbers, usestories todriveshowroom traffic

4. Improve SEO Strategy: Quickly increase thedealership SEOfootprint with multiple SERP listings fromdealers Social Media accountsand profilesubdomains. Back links from hundredsof Social Media sites todealerseCommerce sites boost authority and rank with search engines.


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13Ralph Paglia; [email protected] www.RalphPaglia.com www.ADMPC.comwww.ADMPC.com 13Ralph Paglia; 9th Digital Dealer Conference www.SocialAutoSales.comwww.SocialAutoSales.com

Social Media Marketing Objectives

1. Create and Publish high quality content that attracts

andengages people in demographic categories youroverall dealership marketing programsseek and target

2. Monitor what people aresaying about yourdealershipand report to key dealership stakeholderson what isposted, when, where and by who

3. Promptly create and post appropriate responses to alldealership mentions so peoplesee yourstore cares,pays attention, responds, appreciates complimentsand resolves customer concern issues

4. Drive high quality traffic fromsocial media to targeteddestinationsdefined by dealershipsmarketing strategy

5. Improve SEO footprint by creating multiple SERPlistings fordealership Social Media accounts


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Good ROI analysis almost always requiresaccurate historical information (which fewdealers have). Capturing and analyzing historicaldata requires time anddiscipline. Itseasy to cast

aside analytical tasks when everyone is focusedongenerating profit. However, you cant forecast thefuture without understanding the past. Historicaldata sets a baseline for measuring the Delta.That change can then bemeasured and compared toactions that may have caused it. If you can correlateaction to impact, then you can calculate ROI.

History and CorrelationHistory and Correlation


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Automotive Avenues Internet Sales LeadsBefore Investing in Social Media Marketing

2,3832,383Leads Submitted AnnuallyLeads Submitted Annually(Above the National Average(Above the National Averageformetro cardealersof 968)formetro cardealersof 968)


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6,3406,340Leads Submitted AnnuallyLeads Submitted Annually

166% Increase166% IncreaseDuring Worst EconomicDuring Worst Economic

Climate in 30 Years!Climate in 30 Years!

Automotive Avenues Internet Sales Leads

After Investing in Social Media Marketing


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In the following example, lead activity appears to correlatepositively with traffic to all thedealers blogs. The positivecorrelation is indicated by the change from baseline, whichappears to correspond with the upward movement in blogtraffic. Even then, a definitive correlation cant beestablished

until other factors areeliminated from consideration, such as apromotion or a new advertising campaign.

Identifying correlations can be a time-consuming process,

requiring new variables to be introduced independently ofeach other so that change can be isolated. However, youdont necessarily have to test only onevariable at a time. Withsplit testing, you can try twodifferent experiments, eachtargeting a different segment of your customer base.

History and CorrelationHistory and Correlation


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Does Blog Traffic Lead to IncreasedDoes Blog Traffic Lead to IncreasedVolume of Internet Sales Leads?Volume of Internet Sales Leads?

SalesSalesLeadsLeads

BlogBlogVisitorsVisitors


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Historicw/$500

coupon w/Video

Sales Leads 100 100 100

AverageGross PVR $1,500 $1,000 $1,500

Closerate 5% 10% 15%

Profit from Units Sold $7,500 $10,000 $22,500

Incremental profitfrom Action

N/A $2,500 $15,000

Cost of incentive N/A $500 $2,500

ROI N/A 400% 500%

Does a YouTube Video Lead ResponseDoes a YouTube Video Lead ResponseGenerate aGenerate a ROIROI??


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Metrics

Web analytics today deliver unprecedented insight about online interactions.The basic featuresof the freeGoogle Analyticsservicematch the capabilitiesofproducts that cost thousandsofdollars just a few years ago. Premiumserviceslike Webtrends andOmniture SiteCatalyst build in sophisticated behavioralandsentiment analysis and can track offsite activity such as a prospects

commentson Twitteror useof a mobile application. They can even triggercustomizede-mailsor tweets when a persons behaviormatches certainpredefined patterns.With all this rich data now available, its remarkable how many marketersstilluse the basic metricsof traffic and uniquevisitors tomeasuresuccess. Werenot big fansof thesemeasurements; itseasy to generatespikesofvalueless

traffic by posting celebrity photosor top-10 lists, forexample. In Chapter XX, welistedsome common metrics you can use and how they relate todifferentbusiness goals. We think richermeasuressuch as referring keywords, topcontent, bounce rate, average timespent on site, pages-per-visit and contentanalysis yieldmore actionable insight that will only get better.


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Metrics

The best way toselect relevant metrics is to work backwards. Start with sales trends, match themtoWeb activity and look for themetrics that correlatemost closely. Those are themetrics that aremost meaningful to you. Forexample, if an increase in session timespent on site appears tocorrelate with registrations for a webcast, then that indicates that webcasts resonate with theaudience.You alsoshouldnt confinemetrics to those which can bemeasuredonline. Oneof themost popularindicationsof customersatisfaction is the Net Promoter Score(NPS), introduced in 2003 by Fred

Reichheld of Bain & Co. Obtaining an NPS requires asking customers a singlequestion on a 0-to-10 rating scale: How likely is it that you would recommendour company to a friendor colleague Thissimple tactic has been adopted by big B2B companies likeGeneral Electric and AmericanExpress as a key performance indicator.You can also choose tomonitor classic metrics that have nothing todo with the Internet. Theseinclude pressmentions, speaking invitations and performanceon customersatisfactionsurveys. Metrics alsovary by objective. Forexample, thesuccessof a blog set up to generate

leadsmay bemeasured by inquiries, timespent on site and to repeat visitors, whileone targeted atsearch optimization may beevaluated basedon keyword rankings and inbound links.For ROI purposes, though, the choiceofmetrics is less important than your ability to correlatebehavior to results. In other words, if certain pageviews aremorevaluable than others, then anincrease in traffic andsession time could be a goodstarting metric forevaluating ROI. Just beaware that they are imperfect indicatorsofvisitorengagement.


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One thing you absolutely need to know, however, is how people reach yoursite. Unique

URLs are a way tomeasure that. Were astonished at how many e-mails westill getfrom brand-name companies that dont make useof thissimple tactic, which enables amarketer tospecify a web address that is unique to thee-mail, tweet, wall post or anyothermessage. Unique URLs use a simpleserver redirect function to identify thesourceof an incoming click. They look likethis: http://mycompany.23.com/public/?q=ulink&fn=Link&ssid=5155. Everything after the

word public/ is a unique code that tells where thevisitor came from.Unique URLsenable your analyticssoftware to track inbound traffic fromeach sourceseparately so you can determine the ROI ofeach channel. Without unique URLs, visitsaresimply classified as direct traffic, meaning that thesource could be a forwardede-mail, bookmark or an address typed into the browser.A simpleexampleof how you might use this information is tomeasure traffic to a landing

page and analyze the numberofvisitors who fill out a registration form according to thereferring source. This wouldshow you, forexample, that registration rates are twice ashigh from a newsletter as from a tweet. Thevalueof those registrantsdivided by thecost of the newsletter is an ROI metric. Unique URLs are alsovaluable tosplit testing;you can try out twodifferent invitation messages in thesameemail and use a differentURL foreach tomeasure response toeach message.

MetricsMetrics


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PUTTING IT ALL TOGETHER

Lets apply all the factors wevedescribed above to two B2B social marketing scenarios.First, well compare the ROI of webcasts to white papers. Start with historical data. Whatis the conversion rateof webcast viewersversus people whodownload a white paper?What is the lifetimevalueof an average customer? Compare theoutputs anddivide bycosts to assess ROI:

MetricsMetrics

Webcast White paper

Audiencesize 100 500

Conversion rate 2% 1%

Lifetime profitability $ 10,000 $ 25,000

Cost of acquisition $ 3,000 $ 10,000

ROI 233% 150%

Lets assume the following: The average lifetimevalueof a customer is $50,000 at a 10% profit margin.

1. Average cost of delivering webcast to 100 registered viewers = $3,0002. Viewers convert at a 2% rate3. Average cost of delivering white paper to 500 registrants is $10,0004. Registrants convert at a 1% rate.

Our ROI analysis looks like this:


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Leads Lead value CostQuarterly

ROICumulative

ROI

Y1-Q1 10 $ 1,000 $ 2,000 -50% -50%Y1-Q2 25 $ 2,500 $ 2,000 25% -13%Y1-Q3 35 $ 3,500 $ 2,000 75% 17%

Y1-Q4 50 $ 5,000 $ 2,000 150% 50%Y2-Q1 75 $ 7,500 $ 4,000 88% 63%Y2-Q2 100 $ 10,000 $ 4,000 150% 84%Y2-Q3 130 $ 13,000 $ 4,000 225% 113%Y2-Q4 160 $ 16,000 $ 4,000 300% 144%

Lets look at onemoreexample in which we use a blog for lead generation. We know that

performance will beslow during the first few quarters until search engine traffic kicks in.Based upon theexperienceofothers, we believe that lead growth will improvesteadily astraffic builds. Weexpect to be at 50 leads permonth by theendof the first year and 160permonth by theendof thesecond. Our historical data tells us that a lead is worth $100.We furtherestimateoureditorial costs at $2,000 perquarterduring the first year, doublingto $4,000 during thesecond. Heresour analysisofquarterly and cumulative ROI.

Lead GenerationLead Generation


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Value Measurement

Customersatisfaction

Customersurveys; renewal rates; referrals; incremental business;testimonials; Net Promoter Score

Customer loyalty Renewal rates; incremental business, response rates, eventattendance; testimonials; Net Promoter Score

Customerengagement

Newslettersubscriptions; online community activity; response rates;event attendance; testimonials; feedback volume

Reputation Market share research; awareness research; media citations; analystresearch

Market influence Market share research; lift studies; media/social media citations;speaking invitations; analyst research

Leadership Attitudinal research; growth rate; media citations; copycat competitors

The trickiest aspect of ROI analysis is accounting for intangibles. These include factors like

customersatisfaction, customer loyalty, brand reputation andmarket influence. Many socialmarketing projects are justified for these reasons but theoutputs are nevermeasured, eitherbecause its not worth theeffort or because themeasurements arent in place.In fact, all of theseoutputs can bemeasured and have been for years using someof thefollowing tests:

MeasuringMeasuring IntangiblesIntangibles


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Valuing Twitter FollowersWhen marketers get up on stage todescribe theirsocial marketing successes thesedays, they invariably refer tofollower and fan totals. On Twitter, follower counts have become a sort ofmerit badge, despite the fact that anyonecan quickly run up that number by simply auto-following everyone who follows them. There areeven paidservicesthat inflate follower totals.What is the truevalueof a Twitter follower? There is no industry standard to calculate that number, but if you havethe right metrics in place, you can do that for yourown organization. Heres how:Look at the total numberof clicks to yoursite from Twitter in any given month anddivide that by the numberoftweets you posted. This gives you the averagevisits per tweet. Once you have this number in hand, you can look

at the behaviorofvisitors who arrive from Twitter and compare it to those who find you fromothersources. Look atpageviews pervisit, timespent on site andvisitor paths to identify what percentageof Twittervisitors becomeleadsor customers. Using yourstandardqualifying metrics, you should be able todetermine the averagevalueofa Twittervisitor.Forexample, if 1,000 visitors arrived from Twitter in a given month as a result of 20 tweets, that yields an averageof 50 visits per tweet. If you know that 5% of Twittervisitors register for a downloador newsletter, and that thevalueof an average registrant is $50, then you can calculate that Twitterdelivers $2,500 in businessvalue, or anaverageof $125/tweet. If you have 5,000 followers, then you can also calculate that an average follower is worth

2.5 cents.This formula isoverly simplistic, of course. Not all Twitter followers are createdequal. If you want todivedeeperinto themechanicsof influence, services likeTweetReach.com and Twinfluence.com can calculate the totalreach of your followersor tweets according toso-called second-order followers, or those who follow the peoplewho follow you. Thesemetrics can also be used toestimate thevalueof retweets by certain popularmembers.Thissame approach may also be applied to finding thevalueof Facebook fans, LinkedIn connections, SlideSharefollowers and the like.


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When it comes tomeasuring and tracking online and trying todetermine what your return on investment is with social media,you first need to ask yourself why you want to participate in socialmedia in the first place. If the answer is to build your brand and

develop a loyal following,then you are in it for theright reasons. The currencyofsocial media isearnedfrom both the relationshipsyou establish orenhanceand the content you createandshare with others...

Social Media Content Creation and PlacementSocial Media Content Creation and Placement


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Still, you can't improve what you don't measure. So if your

goal is to measure traffic, sales, or SEO ranking, here aresome free tools that can help:Google Analytics and Feedburner.com areessential, free tools tohelp analyze your company's websiteor blog traffic, subscribercount, and keywordoptimization, as well as additional trends.Gr.aiderss.com allows you toenter a feed URL and returnsstatistics about its posts. Themost popularstatistic is basedonhow many times they aresharedon a variety ofsocial networkingsites.

GetClicky.com shows you every action a visitormakes andoffersa dedicated iPhone version.Socialmeter.com checks your website'ssocial popularity.Statsaholic.com compares rankings andother information on upto three websites at a time.


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Webslug.info compares yoursite's performance to any othersite.Xinureturns.com is great for adding a URL and for receiving a loadof useful statistics ranging from search engine optimization (SEO)tosocial bookmarking andmore.Sometrics.com is an analyticssite that measures yoursocial

advertising efforts.Pagealizer.com is a web analytics that actually suggest changesandoptimizations for your pages.StatsAdvisor.com is another great web analytics that helps youtrack both online andoffline advertising efforts.


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WhoWho is measuringis measuring Social MediaSocial Media ROIROI??


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What is a Social Media Strategy?


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a balancedsocial media marketing scorecardwill consider andmonitoreffects across fourperspectives that balance theshort- and long-

term implications while looking at direct andindirect financial implications. These four are:

1. Financial metrics

2. Digital metrics3. Brand Metrics4. Risk Management


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First of all, ROI is a businessmetric, not a media metric. Stopcalling measuring social media marketing success a calculation ofROI. Its not if youremeasuring all of what social media can do.Theres also a lot of what social media marketing does that isnt

covered in their reporting mechanism. My own presentation fromthe Social Media Success Summit this yearoutlined five areasofbenefit for a companyssocial media marketing efforts anddetailshow tomeasure them. They are:

1. Branding and Awareness

2. Building Community3. Customer Service4. Research and Development5. Direct Sales


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Date Impressions Clicks

Click

Rate Actions

Action

Rate

Con-

versions CPC CPM

Spent

(USD)Unique

Impressions

Unique

Clicks

Unique

ClickRate3/1/2010 126,582 27 0.02% 7 0.01% 2 $0.55 $0.12 $14.95 31,580 27 0.09%

3/2/2010 75,434 13 0.02% 3 0.00% 0 $0.53 $0.09 $6.83 21,782 13 0.06%

3/3/2010 56,752 12 0.02% 4 0.01% 1 $0.51 $0.11 $6.16 15,564 11 0.07%

3/4/2010 25,836 7 0.03% 8 0.03% 0 $0.47 $0.13 $3.28 5,594 6 0.11%

3/5/2010 12,526 2 0.02% 2 0.02% 1 $0.49 $0.08 $0.98 2,422 2 0.08%

3/6/2010 20,423 10 0.05% 4 0.02% 1 $0.52 $0.25 $5.15 2,969 10 0.34%

3/7/2010 58,381 23 0.04% 5 0.01% 2 $0.51 $0.20 $11.71 9,873 23 0.23%

3/8/2010 75,586 20 0.03% 13 0.02% 4 $0.49 $0.13 $9.78 14,071 20 0.14%

3/9/2010 58,396 12 0.02% 7 0.01% 1 $0.50 $0.10 $6.04 11,954 12 0.10%

3/10/2010 46,571 16 0.03% 5 0.01% 2 $0.49 $0.17 $7.85 8,875 16 0.18%

3/11/2010 52,103 16 0.03% 6 0.01% 2 $0.52 $0.16 $8.36 10,706 16 0.15%

3/12/2010 53,708 13 0.02% 7 0.01% 7 $0.53 $0.13 $6.83 10,613 13 0.12%

3/13/2010 91,869 26 0.03% 17 0.02% 19 $0.48 $0.14 $12.57 13,386 26 0.19%

3/14/2010 122,625 34 0.03% 17 0.01% 18 $0.50 $0.14 $17.07 16,490 34 0.21%

3/15/2010 76,608 15 0.02% 5 0.01% 6 $0.49 $0.10 $7.37 13,481 14 0.10%

3/16/2010 60,239 16 0.03% 5 0.01% 6 $0.51 $0.14 $8.14 10,984 16 0.15%

3/17/2010 38,640 12 0.03% 5 0.01% 7 $0.52 $0.16 $6.24 8,173 12 0.15%

3/18/2010 38,249 16 0.04% 6 0.02% 7 $0.52 $0.22 $8.25 7,862 16 0.20%

3/19/2010 17,559 7 0.04% 8 0.05% 6 $0.46 $0.18 $3.21 3,892 7 0.18%

3/20/2010 31,187 8 0.03% 4 0.01% 6 $0.49 $0.13 $3.90 6,832 8 0.12%

3/21/2010 124,746 91 0.07% 71 0.06% 75 $0.35 $0.25 $31.75 15,677 87 0.56%

3/22/2010 177,920 129 0.07% 98 0.06% 103 $0.33 $0.24 $42.10 23,459 129 0.55%

3/23/2010 158,400 120 0.08% 77 0.05% 85 $0.31 $0.23 $37.13 20,604 119 0.58%

3/24/2010 156,235 117 0.08% 76 0.05% 89 $0.31 $0.23 $36.10 20,905 114 0.55%

3/25/2010 199,617 105 0.05% 69 0.04% 84 $0.33 $0.17 $34.78 25,985 104 0.40%

3/26/2010 119,699 80 0.07% 49 0.04% 59 $0.34 $0.23 $27.32 18,618 80 0.43%

3/27/2010 102,171 70 0.07% 39 0.04% 58 $0.35 $0.24 $24.15 15,879 70 0.44%

3/28/2010 140,720 87 0.06% 58 0.04% 81 $0.34 $0.21 $29.93 19,178 87 0.45%

3/29/2010 139,643 85 0.06% 54 0.04% 64 $0.35 $0.21 $30.00 19,406 84 0.43%

3/30/2010 125,990 82 0.07% 46 0.04% 60 $0.36 $0.24 $29.87 18,240 80 0.44%

3/31/2010 131,634 74 0.06% 37 0.03% 51 $0.39 $0.22 $28.96 18,110 73 0.40%

4/1/2010 153,820 80 0.05% 39 0.03% 49 $0.38 $0.20 $30.00 19,466 78 0.40%

4/2/2010 147,711 77 0.05% 46 0.03% 49 $0.39 $0.20 $29.87 19,101 77 0.40%

Totals 3,017,580 1,502 0.05% 897 0.03% 1,005 $0.38 0.19$566.63 481,731 1,484 0.31%


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How Do You Calculate the ROI of a Blog? Domain name/hosting = $20 - $30 per month

Software = Using WordPress or similar free ($150 for set up)

Monthly blogging service = DIY or pay $500 - $5,000 / month

You could hire a designer to put together a sleek design for you and pay anywhere from $500 toseveral thousanddollars. You may get what you pay for, but There is also a time commitment.How much is your time worth? OK, so what are the benefit? They are legion:

Increased SearchIncreased Search EEngine Presencengine Presence

Customer FeedbackCustomer Feedback

LinkLink PpopularityPpopularity andand PageRankPageRank Targeted traffic to your websiteTargeted traffic to your website

Increased sales volumeIncreased sales volume


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1

Birth of a Social CommunityADP builds AnciraCommunity.com integrated

w//Facebook, Twitter, Flickr, etc.

Ancira personnel & suppliers set-up profiles -Get engaged Create Content

Social Media Case Study:Social Media Case Study: Ancira Auto GroupAncira Auto Group

2

Registration / Publication

Site Registered in 120 Social Venues

Web based console manages all accounts

Will you be my Facebook friend?

Subscribe to our YouTube channel

Follow Us on Twitter

Dealer Information

Ancira Crafts Their Message

Employees engage discussions

3

Syndicated Content

Interviews with Civic leaders

Relevant Info From Other Sources

4

Local Interest

Highlight Ancira Civic Leadership

Become local social media leader

5

User Content

Fun StuffForCustomers

Road tests, reviews & how tos

Canine Romance Blooms

6

C St d A i A t G S A t i


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Case Study: Ancira Auto Group San AntonioSocial Media Reputation Management Results

I am absolutely blown awayI am absolutely blown away

that you not only respondedthat you not only respondedbut that you use social mediabut that you use social media

I will be happy to explainI will be happy to explainto everyone the fantasticto everyone the fantasticservice I receivedservice I received

Positive

customerfeedback

HeatersBecomeRavingFans

SearchEngineResults(SERP)

Branded Search

SERP Returns10 pages of

Ancira SocialMedia content

ConsumerResponse toSocial MediaAdvertising

ancira dodgesan antonioancira auto groupancira chevroletancira kia san antonio


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11,15

9 People VisitedAnciraCommunity.com

18,374 Visits

11

,15

9 Absolute Unique Visitors 90,715 Pageviews

4.94 Average Pageviews

00:04:32 Time on Site 48.12% Bounce Rate

60.36% New Visits


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What is the Display Advertising Media Equivalent

Value of AnciraCommunity.com Impressions? 18,374 Visits

11,159 Absolute Unique Visitors

90,715 Pageviews

The aggregate average Cost Per Thousand Impressions(CPM) for Automotive Intender websites geotargetedwithin the San Antonio market area is $7.57 CPM

90,71590,715 PageviewsPageviews = 907.15= 907.15 CPMCPM UnitsUnits

907.15 x $7.57 =907.15 x $7.57 = $6,867.13$6,867.13


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What is the Google Adwords Pay Per Click (PPC)

Search Advertising Media Equivalent Value? 18,374 Visits

11,159 Absolute Unique Visitors

90,715 Pageviews

The aggregate average Cost Per Click (CPC) for GoogleAdwords campaigns for automotive relevant keywordsgeotargeted within San Antonio Metro is $2.64 CPC

18,374 Community Visits = 18,374 Click18,374 Community Visits = 18,374 Click ThroughsThroughs

18,374 Clicks x $2.64 CPC =18,374 Clicks x $2.64 CPC = $48,507.36$48,507.36


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What is the comparable Cost Per Unique VisitorEquivalent Value?

18,374 Visits 11,159 Absolute Unique Visitors

90,715

PageviewsThe aggregate average Cost Per Unique Visitor (CPUV)

for all other Ancira Auto Group online campaigns focusedon driving traffic to Ancira Web Sites $2.12 CPUV

11,15

9 Unique Visitors11

,15

9 Unique VisitorsX $2.12X $2.12 CPUVCPUV------------------------------------------------------------------------

$23,657.08$23,657.08


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What is the Social Media Aggregate EquivalentMedia Value Average for AnciraCommunity.comwithin the time period measured?

$6,867.13$6,867.13 CPMCPM$48,507.36$48,507.36 PPCPPC$23,657.08$23,657.08 CPUVCPUV------------------------------------------------

(79,031.57 / 3) =(79,031.57 / 3) = $26,343.85$26,343.85

A t ti A C it G l A l ti


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Automotive Avenues Community Google Analytics

(3 weeks of Facebook Advertising Campaign)


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(3 weeks of(3 weeks ofFacebookFacebook Advertising Campaign)Advertising Campaign)

ROIROI Lesson Learned:Lesson Learned: FacebookFacebook Advertising works best whenAdvertising works best whenused to drive traffic to, and promoteused to drive traffic to, and promote FacebookFacebook Dealer Pages,Dealer Pages,Groups and Special Offers hosted within Facebook.comGroups and Special Offers hosted within Facebook.com


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Exampleof ROI Report Generated by Spreadsheet Macros

basedon calculatedvaluesof Fans, Followers, Subscribers,Impressions, Click-Throughs, etc.

Pages Avg Time % New Bounce


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Source/Medium Visits

Pages

/Visit

Avg. Time

on Site

% New

Visits

Bounce

Rategoogle / organic 2,947 1.97 20:34 87.51% 74.35%

(direct) / (none) 2,822 2.47 10:18 68.67% 67.33%

apps.facebook.com / referral 1,523 1.11 15:29 95.40% 91.20%

facebook.com / referral 533 2.57 0:54 76.55% 74.30%autoaves.com / referral 447 2.80 11:16 57.72% 62.64%

yahoo / organic 266 1.67 10:27 90.23% 72.93%

bing / organic 260 1.89 21:47 86.92% 71.15%

googleads.g.doubleclick.net / referral 121 1.28 11:18 95.87% 85.12%

google.com / referral 119 1.52 11:29 97.48% 57.14%

twitter.com / referral 95 5.66 15:24 35.79% 40.00%

search / organic 77 1.65 20:52 85.71% 67.53%autodigitalmarketing.com / referral 70 1.99 20:13 85.71% 65.71%

youtube.com / referral 57 1.12 14:44 96.49% 91.23%

cli.gs / referral 46 16.50 10:57 0.00% 28.26%

notify.bluecoat.com / referral 40 4.85 9:00 20.00% 45.00%

aol / organic 28 1.36 18:00 96.43% 78.57%

denverssecret.com / referral 23 1.96 21:54 8.70% 56.52%

webmail.aol.com / referral 22 2.14 14:10 95.45% 54.55%

automotive-avenues.com / referral 20 1.65 14:24 95.00% 70.00%

us.mg2.mail.yahoo.com / referral 19 3.42 22:44 73.68% 31.58%

qq829.com / referral 18 1.00 0:00 100.00% 100.00%

webhelp.qwest.net / referral 18 1.33 20:00 94.44% 88.89%

images.google.com / referral 15 3.53 22:24 86.67% 20.00%

dogpile.com / referral 14 1.64 15:25 78.57% 64.29%linkedin.com / referral 13 2.92 20:18 100.00% 61.54%


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There is a group of professionals who argue that Social Media

ROI can NOT be calculated. And there is an opposing groupthat argues the point that Social Media Marketing ROI can,andmust be calculated. This article is basedon the blog postsand argument put forth by Dag Holmboe that Social Media ROI

can be calculated. We will use Holmboe's logic, explanationand recommended tools todescribe andoutlineseveraldifferent waysofcalculating the Social Media ROI.

Social Media Marketing Debunking the ROI Myth


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Social Media Marketing:Measurements to Financial Values for ROI


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Social Media Marketing ROI Categories


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First up is Forresters Social Media duo Charlene Li and

Jeremiah Owyang. In 2007, Charlene and her team conducteda study on the ROI of blogging where they saw that it is fairly easyto calculate the ROI of blogging. They did not calculate a directprofit based ROI of their blogging campaign. Instead, they

calculated the replacement value and the comparable cost of keyfunctional objectives achieved with social media toequivalentadvertising, PR and wordofmouth marketing if theseobjectiveswould have been achieved using traditional media. They thentransposed thevaluemetrics to the blogging calculations and

compared the cost between traditional media andsocial mediabasedon thesamevalues. Thevalue and the cost of traditionalmedia is well known so basedon thesamevalue but difference incost, the ROI of blogging can be accurately determined.



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Charlenequotes a Social Media Marketing ROI example:FastLane has about 100 people commenting onthe blog each month, which is equivalent togaining customer insight on products and brandsfrom a traditional focus group. We estimated thatthe value of this was equivalent to running afocus group every month at the cost of $15,000 a

month, or $180,000 a year. Voila theres thevalue of the blogging benefit laid out in black andwhite.



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The following list supporting Social Media ROI is from BillJohnston at Forum One. Bill has compiled a set of publiclyavailabledata that are related to Social Media ROI:1. Community users remain customers 50% longer than non-

community users. (AT&T, 2007)

2. Community users spend 54% more than non-communityusers (EBay, 2008)

3. Community users visit nine times more often than non-community users (McKinsey, 2005).

4. Community users have four times as many page views asnon-community users (McKinsey, 2005).5. 56% percent of online community members log in once a

day or more (Annenberg, 2009)


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Ralph Paglia; Automotive Digital Marketing Professional CommunityAutomotive Digital Marketing Professional Community @ www.ADMPC.comwww.ADMPC.comClick to Zoom


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Ads were seen 7,201,334 times in October byFacebook members who live near the twodealerships in this case study

1,730 of those Facebook members clicked on

one the two dealer advertisements

Since we spent $1,595.25 for the Facebook AdCampaigns, each click customer visit to ourcommunity site, or Fan page cost 92 cents.

To show Facebook members our dealershipads 1,000 times, it cost 22 cents


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First 4 DaysFirst 4 Days


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After 30 DaysAfter 30 Days


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RalphRalph PagliaPagliaADPADP Digital Marketing SolutionsDigital Marketing [email protected][email protected]:: 505505--301301--63696369 www.DigitalRalph.comwww.DigitalRalph.com

Presentation available at:

www.AutomotiveDigitalMarketing.comwww.AutomotiveDigitalMarketing.com

oror ADM.fmADM.fm1. Join ADM1. Join ADM

2. Go to2. Go to ADM ForumADM Forum

3. Use Search:3. Use Search: Presentation File ExchangePresentation File Exchange

I want to thank for a great concept...

www.Ralphertising.comwww.Ralphertising.com

NCM20Group Hyundai SocialMediaROI v2

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