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ROI of Social Media
The document discusses the ROI of social media marketing, highlighting its growth and the increasing allocation of marketing budgets to social media platforms. It emphasizes the importance of brand advocacy in enhancing marketing efficiency, as well as the challenges that social media marketers face, such as measuring ROI and determining effective content strategies. The content also outlines various content frameworks and strategies to engage audiences and drive sales leads.
ROI of Social Media
- 1. THE ROI OFSOCIAL MEDIA MARKETING: HOW BUSINESSES SHOULD APPROACH SOCIAL MEDIA FOR MAXIMUM IMPACT October 2019 1
- 2. SOCIAL MEDIA GROWTH 0 10 20 30 40 50 60 70 80 90 100 20042005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Advertising Public Relations Social Media 2
- 3. SOCIAL MEDIA GROWTH BYPLATFORM 3
- 4. 3.0% 5.9% 7.1% 7.6% 6.6% 9.4% 10.6% 11.7% 9.8% 13.8% 11.9% 22.9% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 2009 20102011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 % of Marketing Budget Allocated to Social Media Source: August 2019 Duke University's Fuqua School of Business "The CMO Survey: August 2019" commissioned by American Marketing Association (AMA) and Deloitte4
- 5. BIGGEST CHALLENGES FOR SOCIALMEDIA MARKETERS 0% 10% 20% 30% 40% 50% 60% Measuring ROI Understanding Cross- Channel Success Determining What Content to Post Securing Budget and Resources Developing a Strategy to Support Business Goals The Sprout Social Index, Edition XIV: Realign & Redefine https://sproutsocial.com/insights/data/2018-index/5
- 6. 80% 65% 54% 41% 21% 25% Build Awareness IncreaseEngagement Increase Web Traffic Generate Sales Leads Support Customers Increase Brand Advocacy from Customers SOCIAL MEDIA MARKETERS BIGGEST GOALS The Sprout Social Index, Edition XIV: Realign & Redefine https://sproutsocial.com/insights/data/2018-index/6
- 7. OBJECTIVE MAPPING ORGANIC VS.PAID SOCIAL MEDIA ORGANIC PAID BRAND AWARENESSINCREASE ENGAGEMENTDRIVE WEBSITE TRAFFICDRIVE SALES LEADSCUSTOMER SUPPORTBRAND ADVOCACY 7
- 8. InMail Feed FeedPre-Roll Cost per 1000 Impressions $20 $8.50 $7 $8 Click-thru Rate 40% .2% .75 - 2% .4% Cost per Click $.45 $4 $.66 $2.25 Objective Drive Sales Leads Increase Engagement Website Visits Brand Awareness PAID MEDIA CHEAT SHEET 8 Source: AdStage - Q2 2019 Paid Search and Paid Social Benchmark Report
- 9. SELLING ON SOCIAL CHALLENGESWITH A PROMOTIONAL FOCUS Ad content blindness Increasing costs 5X faster than the pace of inflation Source: https://www.cmo.com/adobe-digital-insights/articles/2017/3/9/adi-summit17-advertising-report.html#gs.bf9qor Only 34% of people trust ads on any channel 9
- 10. 10 0 Comments0 Shares Employee #1 Employee #2 Employee #3 Employee #4 Tom from MySpace THE ORGANIC STRUGGLE IS REAL 10
- 11. MAXIMIZED SOCIAL MEDIA PeopleProclaiming Love for Arby’s 11
- 12. MAXIMIZED SOCIAL MEDIA ARBY’SBRAND TURNAROUND 2010 2014 2016 2017 2018 2019 12
- 13. BRAND ADVOCACY Drives MarketingEfficiency • “Achieves broader reach: The average social media user connects with more than 400 friends and family – including people you wouldn’t typically target. A brand advocate gives you access to new markets.” • “Publications and news outlets prefer to feature companies with a strong fan base. A brand advocate opens the door to new promotional opportunities.” • “Brand advocates give more credibility to your unique selling points and business values, convincing customers to convert” • “92% of customers seek social recommendations before buying” Source: Sprout Social - https://sproutsocial.com/glossary/brand-advocate/ 13
- 14. THE ROI OFMAXIMIZED SOCIAL MEDIA 14 BRAND ADVOCACY Drives Marketing Efficiency
- 15. Awareness Interest ConsiderationDecision User Experience Advocacy 15
- 16. Awareness Interest ConsiderationDecision User Experience Advocacy 16
- 17. Awareness Interest ConsiderationDecision User Experience Advocacy 17
- 18. ENGAGEMENT Employees + Top Fans Engagement Rate AWARENESS Friendsof Friends Reach Impressions AUDIENCE GROWTH Niche Exposure New Advocates SALES LEADS New Business Δ on Business Level Metrics Day 1 Day 30 Day 90 Day 180 Measuring Impact of Brand Advocacy 18
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- 20. 20 CONTENT FRAMEWORK Three Typesof Content Health Content Basic content to show audiences you’re an active business. On-going Hub Content Serial push content taps into customer interests, to generate brand advocacy 1 – 2 times per week Hero Content Big moments with the power to create spikes in awareness Monthly
- 21. 21 CONTENT FRAMEWORK MONTHLY CADENCE Value Impact,Cost Time (Frequency, Planning, Production Hero Hub Health Audience
- 22. CONTENT FRAMEWORK Examples Health ContentHub Content Hero Content 22
- 23. 0 5 10 15 20 25 30 35 40 45 50 2015 2016 20172018 2019 Monthly views (in millions) 0 100 200 300 400 500 600 700 2015 2016 2017 2018 2019 Followers (in thousands) AUDIENCE GROWTH 2015 - 2019 23
- 24. BRANDS THAT INSPIRE FavoriteExamples United Healthcare MailChimp Sofi 24
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- 27. .76 3,100 Followers Engagement Rate % 1,650 161 .09% Industry Benchmark 206 5,803 1.8 4,807 Followers EngagementRate % 4% Industry Benchmark 4.3 785 Followers Engagement Rate % 2,090 61 Interactions Posts 1.53% Industry Benchmark Social Media Performance Example Jan 1, 2019 – September 23, 2019 178 602 .35 12,992 Followers Engagement Rate % .048% Industry Benchmark Benchmark source: https://www.rivaliq.com/blog/2019-social-media-benchmark-report/27
- 28. Engagement Reach 5% 5k 125K 20% LINKEDIN COMPETITIVEANALYSIS Jan 1 – September 30th, 2019 Engagement Reach 5% 5k 125K 20% 28
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- 30. “Stop thinking likean advertiser and start thinking like a media company.” “Any company can be a media company in 2019.” - Gary Vaynerchuk Followers In a relatively short period of time, his efforts on e-commerce grew the business’ sales from $3 million a year to more than $60 million annually. 6.7M 1.9M 3.4M 30
- 31. “Our goal iskeep people on the platform for as long as possible.” No one wants to see ads (and they won’t, unless we get paid first). Sporadic, low-quality content repels people. Sending people to another website is not a priority. - What Social Media CEOs Would Tell You If They Could 31
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- 34. MESSAGING MODEL CANVAS PersonasInterests Values Needs TARGET AUDIENCE Assets Values Brands / Products Purpose YOUR COMPANY Content Concepts 34
- 35. • “Brand asFriend” creative takeovers • Data-driven insight posts and infographics • Thought leadership reports • Case studies HeroHealth Content Hub • Behind-the-scenes • Employee Engagement • Employee Achievements • New Job Openings • Recent Hires MESSAGING MODEL CANVAS 35
- 36. Facebook PAY TO PLAY Instagram BEST FOR ORGANIC GROWTH (FOR NOW) LinkedIn TALENT ENGAGMENT B2BLEADS YouTube BIG COMMITMENT CHANCE TO MONETIZE Twitter REAL-TIME EVENTS CUSTOMER SERVICE Tik Tok COMING SOON HAS ARRIVED Social Self- Improvement Visually Stimulating Imagery Professional Self- Improvement Insights Viscerally Entertaining Topical and Timely Conversation Personality-Driven Short-form Video SOCIAL MEDIA DISTRIBUTION CHEAT SHEET 36
- 37. HeroHygiene / HelpHub CONTENT DISTRIBUTION Stories Articles 37
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- 39. ENGAGEMENT Engagement Rate AWARENESS Reach Impressions AUDIENCE GROWTH New Advocates SALES LEADS Δ on Business LevelMetrics Day 1 Day 30 Day 90 Day 180 Measuring Impact of Brand Advocacy 39
- 40. EARLY RESULTS -AGENCY 30 Days Engagement Rate 18% Reach 78% Followers 4% 5.64 – 6.65% 28k – 50k 11,010 – 11,454 40
- 41. EARLY RESULTS -CLIENT 30 Days Engagement Rate 69% Reach 95% Followers 9% 3.42 - 5.46% 102k – 198k 9,731 – 10,637 41
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- 43. RECOMMENDATION Map your messaging to brandadvocacy Embolden social media teams Install the content maximization framework 43
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