90% of CMOs say social data has impacted at least some of their decisions; only 47% use data to make predictions or forecast sales. (source: Bazaarvoice)
87% of marketers want to know how to measure their return on investment for social media activities (source: Social Media Examiner)
85% use social networks in some way; only 14% tie financial metrics to it (source: AdAge)
These facts indicate most companies use social media but don’t measure it. Yet, virtually all agree they would make better business decisions, possibly determine their return of investment, if they did.
Social media measurement is the use of tools to monitor what is being said on the internet. It also is called Social Listening, Online Analytics, Buzz Analysis, Social Media Measurement, Social Media Intelligence.
Admittedly, it’s a hard area to get your hands around. There are hundreds of social media measurement tools. Costs range from free to upwards of $20,000/year and, as with any tool, they have specific strengths and weaknesses.
What to do? You’ll never know until you get started. The risk of doing nothing may be greater
To help you get going, here are the Top 7 free social media measurement tools from 7 experts.
GOOGLE ANALYTICS: Has Social Visitors Flow. It is a visual presentation of how visitors from social properties are navigating your website. Assuming the goal of your social media campaign is to get more traffic to your website, this report quickly gives you insight into which social platforms are sending the most traffic to your site and what your social visitors are doing once they get there. – Lisa Peyton, Social Media Examiner
HOOTSUITE: Is one of the best free social media management tools available, and covers multiple social networks, including Twitter, Facebook, LinkedIn, WordPress, Foursquare and Google+. The weekly analytics reports and the excellent team management facility (delegating tasks, sending private messages) can be very useful when there’s more than one person handling the social media accounts. – Ruxandra Mindruta, Brandwatch
MARKETING GRADER: Has been modified over the past few years to focus on your social media presence. Scoring low in these areas is a far greater problem than say, not having alternate text tags for your images. Marketing Grader makes recommendations on how to perform better keyword searches and to ‘power up’ your site’s engine. – Nader Mahmoudi, Business2Community
SOCIAL MENTION: Is a social media search engine that searches for keywords on social media platforms — including blogs, comments, bookmarks, events, news, videos and microblogging services — and provides metrics around keywords and “sentiment.” It also provides graphic illustrations or charts showing mentions per day or week. - JD Lasica, Socialbrite
SOCIAL SEARCHER: Is a social search engine with strong social analytics and excellent dashboards for a free tool. Enter a brand, topic or keyword and the analytics display mentions by social networks. They also have sentiment analysis. There are pie-charts showing type of posts (e.g. status, link, video) for social networks . The dashboards look good for presentation purposes too. – Rob Petersen, BarnRaisers
SPROUT SOCIAL: Is the perfect social monitoring tool for small-to-medium sized franchises, local businesses with a handful of locations and smaller companies on a limited budget. I can imagine restaurants monitoring their reviews and tips on Foursquare using Sprout Social. The integration of Klout scores of authors also helps brands to identify influential mentions. I highly recommend Sprout Social for business owners. – Diedre Drewess, DragonSearch
TOPSY: One part virality tool, one part tracking mechanism, one part social listening post, Topsy is becoming one of new favorites. I’ve moved from Tweetmeme to Topsy on my embedded tweeting, due to improved metrics, and Topsy’s competitive intelligence capabilities are impressive. Find a tweet your competitor sent, and see how many times it was retweeted, by whom, which among them are influencers. – Jay Baer, Convince and Convert
These tools are also mostly intuitive to use.
If your business is in social media, what do you do to measure it? If you don’t, do these social medial measurement tool help you get going?
TV and Digital are the two media channels that now receive the most ad spending. They are the only two media channels where ad spending is increasing as opposed to Print, Radio and Outdoor where it is decreasing. If current trends continue, Digital is expected to overtake TV by 2018.
Marketers spend more in Digital but many companies ask: Show me the ROI!
To better understand Digital Marketing ROI and this trend, we recently published 11 Studies Prove the ROI of Digital Marketing. Below is an Infographic of our findings from Piktochart, a company that offers an all-in-one online infographic application where anyone can create custom infographics, banners, reports and presentations online utilizing an easy interface that everyone can use.
11 studies is a significant number. If you need more convincing, here are 6 more studies that prove Digital Marketing ROI.
ADAGE: (WHERE DO WE SPENT OUR TIME?) At 3.9 hours daily, TV viewing remains the most time-consuming media activity, followed closely by going on the internet with a computer, not for work, at 3.8 hours. 95% of respondents go online at home; plus, 57% go online using their mobile phone, and 16% do so for at least 3 hours daily. If computer and mobile are added for internet usage, consumers now spend more of their leisure time on the internet than TV,
HARVARD BUSINESS REVIEW (HOW DO WE BUY?): In Branding in the Digital Age, You’re Spending Your Money in All the Wrong Places, HBR reports the internet has changed the way we buy: Once, a shopper would systematically winnow his brand choices to arrive at a final selection. Now, relying heavily on digital interactions, he or she evaluates a shifting array of options and remains engaged with the brand through social media after a purchase. Consumers today connect with brands in fundamentally new ways through the internet and social channels.
INTERACTIVE ADVERTISING BUREAU (IAB) (WHAT CAN WE MEASURE?): The IAB, 4 A’s and ANA concluded that brand engagement was not a single event; rather, it was a continuum of activities that were cognitive, behavior and emotional. They then demonstrated by detailing every possible touch point of the consumer journey how the engagement “journey” could be measured for digital through survey, eye tracking, web analytics, social listening and social analytics more effectively than any other media channel.
MCKINSEY (WHY DOES IT WORK?): McKinsey analyzed 24 customer touch points for more than 9,000 new car buyers to better understand which touch points drive customers’ premium perceptions and willingness to pay. Among their conclusions: 1) Digital channels dominate the purchasing “journey,” 2) digital customers demand seamless integration, 3) digital products secure loyalty and 4) digital sales are bigger than expected.
SEORCHERS (HOW MUCH DOES IT COST?): To reach 1,000 viewers, it costs between $1-$3 for Online (Search) and $5-$10 for Online (Display). This compares to $10 for Cable TV, $24-$30 for Prime Time TV, $40 for Radio and $100 for Magazine. Plus, 90% of all purchase decisions begin online.
SYNCAPSE (WHAT IS THE ROI OF WORD OF MOUTH?): Sharing, comments, Likes, reviews and ratings are prevalent on the internet. Do they influence buying behavior? What is their value? Syncapse has been measuring word of mouth since 2010 to understand the value of a Facebook Fan. They measure Fans for over 20 major brands including BMW, Coca-Cola, Disney, McDonald’s, Starbucks and Walmart. In the latest year (2013), the average value of a Brand Fan increased 28% to $174.17. This is because Facebook Brand Fans are: 1) 85% more likely to advocate their brand versus 60% for non-Fan users, 2) Spend 42% more in respective categories than non-Fans, despite no income difference and 3) 11% more likely to continue using their brands than non-fan users.
Newer media channels always have more to prove. If your company requires proof points, 17 studies that cover a wide range of industries and media properties should satisfy those who need convincing.
Do these studies prove Digital Marketing ROI to you?
Many companies believe there still isn’t enough data to prove return on investment (ROI) in digital marketing.
However, according to Nielsen Ad Dynamics, companies in FMCG (Fast Moving Consumer Goods) allocate 60% of media to television even though only 18% of tradition TV campaigns generate a positive ROI (source: Socialnomics).
What does this tell you about how companies make decisions? By habit? Or by effectiveness?
Here are 11 studies that prove the ROI of digital marketing (with the links, brief summary and key findings of what each study proves).
CADBURY: Cadbury’s “Chocolate Charmer” online advertising campaign provided ROI almost 4X higher than their TV campaign. The chocolate brand ran a cross-media campaign for its Dairy Milk brand, covering TV, online ads and YouTube promoted videos. Despite only investing 7% of its budget in online, the brand saw the sector generate 20% of the sales.
COMSCORE (KELLOGG): Kellogg uses marketing mix models to assess the effectiveness of the various elements of its marketing mix. Results from two Brand Market Mix Models show an increase in ROI of 5x and 6x for digital advertising since Kellogg began using comScore advertising effectiveness services to improve the delivery of its media plans. As Kellogg adds viewability measurement* to its optimization processes, it is expected that these ROI numbers will increase further.
DIGITAL CONSORTIUM STUDY: Consortium members who include Procter & Gamble, Unilever, Nestlé, Kraft Foods, Mondelez, Kimberly-Clark Corp. and Kellogg Co. found marketing-mix models undervalued digital ads, Overall, the best models underestimated the ROI of Facebook and Google ads by only 4% and 11%, respectively. The study found ROI from Facebook ads is underestimated by as much as 48% and from Google search ads by as much as 39%.
DIGITAL DISTRESS (ADOBE): In a survey of 1,000 US marketers, it was found that only 44% of marketing departments say they have a great deal of influence over their organization’s overall business strategy; 40% think their company’s marketing is ineffective; only 34% feel highly proficient in digital marketing but 83% say it is important for marketing to prove the business impact of ROI and 79% say it will be even more important next year.
ECOMOMETRICS: Microsoft did an Econometrics study of the effectiveness of digital advertising. Econometrics is looking at vast amounts of good quality data, collected over long periods of time to identify and quantify different brand drivers. As for ROI, they found digital outperforms TV, Print, Radio and Outdoor. They also found that, if digital is added to these media channels, it enhances their effectiveness.
ECONSULTANCY: comScore and Econsultancy show that more than half of digital ads (54%) are never seen by consumers. It’s a colossal waste, and demonstrates the need for brands and marketers to make sure for ROI that ads are viewable. They recommend: 1) Make viewability a top priority, 2) Select ‘on-demand’ ad formats, 3)Native ad formats will be more viewable, 4) Make the creative compelling and 5) Be relevant to the content and the consumer.
FOURNAISE: In interviews with 1,200 CEO’s, management and marketing decision makers, 90% global marketers are not trained to calculate return on investment (ROI), and 80% struggle with being able to properly demonstrate to their management the business effectiveness of their spending, campaigns and activities.
GOOGLE AND DOVE: Google and Dove worked together to explore the impact of online advertising on in-store sales. The study found that the inclusion of online advertising resulted in a 6% overall sales uplift. Online advertising was most effective when used in synergy with national TV, a combination that led to a 11% sales uplift. Most interestingly, it was found that although the campaign advertised a single product, it was effective in generating sales over the whole range.
KANTAR WORDPANEL: Coke’s return on investment from Facebook advertising in France beat its ROI from TV. Every euro spent on Facebook returned 2.74 euros in additional Coke sales. That was 3.6 times better than the ROI attributed to TV ads. In all, 27% of incremental sales Kantar attributed to the campaign came from Facebook, but only 2% of the cost.
NIELSEN: Consumer packaged goods (CPG) brands can experience a return of almost three dollars in incremental sales for every dollar spent in online advertising that has been precisely delivered using purchase-based information. Nielsen completed more than 800 studies over the past seven years, collaborating with more than 300 CPG brands and 80 companies to measure the correlation between online advertising and offline consumer purchases.
166 CASE STUDIES PROVE SOCIAL MEDIA ROI: BarnRaisers has published case studies that prove the ROI of social meidia for B2C and B2B comapnies (large and small) across a broad range of digital marketing channels – Social Media, Social CRM, SEO, Customer Service and Social Promotion. You can download the eBook for free on the sidebar of this website
Do these studies prove the ROI of digital marketing to you? Do they help your company to make decision based on effectiveness, not by habit?
Web analytics is not just a tool for measuring web traffic.
Off-site web analytics refers to the measurement of a website’s potential audience (opportunity), share of voice (visibility), and buzz (comments) that is happening on the internet as a whole. On-site web analytics measures a visitor’s behavior once on your website. This includes its drivers and conversions.
Taken together, web anlaytics provides a complete picture of your audience and their attitudes and behaviors toward your brand. Web analytics is the most valuable, useful, cost-effective and timely resource a business has to answers key strategy questions.
Google Analytics is the most widely used web analytics software. Google Webmaster Tools shows traffic for each keyword separately; it gives more information about website performance. There is even a Google Analytics Academy to learn all about how to use web analytics done online on the participant’s schedule. They’re all free to use so there’s no reason a company shouldn’t dedicate some time and attention to examining web analytics.
If you need more convincing, here are 37 key strategy questions web analytics answers.
WHO ARE OUR CUSTOMERS?
Who do we attract?
Who do we want to attract?
Who is visiting for the first time?
Who is returning for more visits?
What cities or countries are most people visiting from?
What search keywords are sending us traffic?
What percent of traffic comes from mobile devices?
Who are our most valuable segments?
Who is worth doing marketing efforts to based on their business potential?
Are we doing better or worse?
WHAT ARE THEIR BEHAVIORS TOWARD OUR BRAND?
What actions do people take?
Are they taking the actions we want?
How do people find us?
How do people travel through the site?
What sort of experience do we create for our users?
What percent of users view at least 3 pages per visit?
What percent of users remain on site for at least 3 minutes?
Where do our most active visitors come from?
Where do visitors click?
Where are our most valuable users coming from?
Who shares our content?
What content works best?
What percent of users comment on content?
Who recommends us to a friend?
What social networks and social media metrics are worth tracking?
What do they buy from us?
HOW DO FIND MORE PEOPLE LIKE THEM?
How do we find more people like the ones who are most valuable customers?
How long does it take for someone to decide to do business with us?
How do we know if our site is doing well relative to competitors?
How do we know if our marketing efforts are working?
How has advertising worked?
Was advertising worth it?
How can we identify the ideal marketing mix?
How do analytics help us understand how the business can make the most revenue and profits?
What key metrics should be used for Key Performance Indicators (KPIs)
What is the best way to measure ROI?
Do the answers to these questions matter to your business? Do they convince you to dedicate time and attention to web analytics? Does your company need to learn how to use web analytics better?
Native Advertising is a form of paid media where the ad experience follows the natural form and function of the user experience in which it’s placed.
In 2011, it didn’t exist as a paid media channel.
In 2013, native advertising is a $3.7 billion media industry, 56% larger than social display ads (source: eMarketer),
But, for all the money being poured into native advertising, does it generates revenue for the businesses that use it? Does it “Show Me the Money” to advertisers and marketers?
Here are 4 native advertising case studies that prove ROI.
DIGITAL MARKETER: has an offering called Authority ROI. It is a course designed to teach bloggers how to make money for their blogs by treating them like media properties They use Twitter’s Promoted Tweets for this campaign. Because the ads are “native”, they look just like any other tweet. There’s no mention of a product. There’s no selling. They build three “native worthy” landing pages with informative articles. The ROI of Twitter Promoted Tweets is +198% based on the :
9.71K Engagements (this benefits us on Twitter well beyond this campaign)
$0.27 Cost Per Engagement
$7,937.85 in Revenue
GE: is showcasing young innovators on the Jimmy Fallon show in a native property called “GE Fallonvention.” As GE’s executive director of global brand marketing, Linda Boff, explained, GE is “leaning in” to native advertising more and more. The multinational conglomerate has been one of the early adopters of the “brand as content creator” trend, using social media platforms and online media partnerships to establish itself as more than a brand that makes big machines, but rather a brand that cultivates and supports a culture of innovation and invention. “Great content can come from a lot of different places, but funnily enough, it seems to be traditional media can get a little more attention when it comes to native,” she said. The first segment has gotten 333,106 views on YouTube so far, and, according to Boff, the video completion rate is 92 percent.
MINI USA: has a program with BuzzFeed since 2012. BuzzFeed COO Jon Steinberg explains the objective on SlideShare: “The primary goals of MINI’s collaboration with BuzzFeed were to continue broadening awareness for the brand slogan ‘Not Normal’, emotionally engage with its audience, and enhance perception of MINI as a fun brand.” On BuzzFeed alone, the first articles has more than 100,000 likes, is shared 35,000 times and were tweeted 7,000 times. As a result of the native ad campaign, the number of those who would consider buying a MINI as their next car has increased by 35.8%. The statement ‘MINI is a brand that stands for fun’ was supported by over 50% more test participants at the end of the campaign.
NEWS CRED: is a B2B SaaS company that use LinkedIn Sponsored Updates, other native advertising and Google Adwords. They are looking for these vehicles to drive: 1) Names: At the earliest stage of the sales cycle, they identify names and contact info of prospects, 2) Leads: Names converts to a lead when the person expresses real sales interest, 3) Opportunities: Leads convert to opportunities when the have successful meetings with leads who show intent to buy and 4) Closed Won Deals: Opportunities convert to closed won deals when contracts have been signed. In terms of ROI, for every $1 spent on LinkedIn Updates, News Cred earned $17.60 in revenue; for other native advertising, the ROI was $1 returned $14.60 and for Google Adwords the ROI was $1 returned $3.10.
If you’re interested in native advertising and ROI, the IAB is conducting a Native Advertising eCourse beginning August 5th. It consists of three online course of one hour each.
Do these case studies convince you of the ROI of native advertising? Do they tell you, for native advertising to “Show Me the Money,” marketers has to spend money or have a strategy for how that money makes money?