the real costs of social media
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And why it’s totally worth it
The Real Cost of Social Media
Katrina (Scooter) KokoskaSchipul@[email protected] #schipulcon
What?! SMM isn’t free?
@kkokoska // #schipulconhttp://www.flickr.com/photos/75511860@N00/4353835455/
What We’ll Cover:1.) Rethinking social media costs2.) Budget planning breakdown3.) Measuring ROI
@kkokoska // #schipulcon
1.) Rethinking the cost• 43% of US companies are successfully
finding new business with SMM. (Marketing Profs)
• A move from tinkering to full deployment• In 2011 SMM will account for 10.1% of
marketing budgets• Up from 7.1%
@kkokoska // #schipulcon
@kkokoska // #schipulcon
The Fanpage
Custom Tabs
• Hub of your social media presence• Home of your promos• Gateway to your website• SEO
@kkokoska // #schipulcon
@kkokoska // #schipulcon
The Newsfeed
The Ticker
• Facebook accounts for 90% of time spent social networking
• The Newsfeed accounts for 4% of ALL time spent online
• Users are 40-150 times more likely to consume your content in their newsfeed than on your page
• The average Facebook user has 130 friends (comScore)
@kkokoska // #schipulcon
@kkokoska // #schipulcon
Sponsored Content
• Newsfeed is more and more competitive• Built-in endorsements• Flexible and easy-to-use
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The Cost of Facebook:• Strategy• Design• Content creation• Development/Hosting• Third-party apps• Research• Legal counsel• TIME
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@kkokoska // #schipulcon
@kkokoska // #schipulcon
Getting Started
A Week of Twitter• Content Research – 2 hrs.• 3-5 tweets per day – 2 hrs.• Monitoring – 2 hrs.• Third-party apps – Btwn. $0 and $500/month• Evaluation – 1 hr
@kkokoska // #schipulcon
@kkokoska // #schipulcon
Social Media Toolbox
http://www.flickr.com/photos/95248808@N00/178177044/
Types of Tools• Twitter – Tweetchat, Tweetdeck, Hootsuite• Facebook – North Social, Short Stack• Listening – Radian 6, Traackr• Tracking – Google Analytics, bit.ly• Content Creation
@kkokoska // #schipulcon
@kkokoska // #schipulcon
Folding it in
Is this really worth all the trouble?
• SMM is projected to be $3.08 billion of online marketing spends – 10% (eMarketer)
• Organizations are increasing aspects of their SMM budget between 18% and 95% (eMarketer)
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Communicating at Your Audience
@kkokoska // #schipulconhttp://www.flickr.com/photos/38115734@N00/470341923/
Communicating with Your Audience
@kkokoska // #schipulconhttp://www.flickr.com/photos/75511860@N00/4353835455/
@kkokoska // #schipulcon
Potential Impressions• 621 likes• 18 shares• 56 comments• 9 liked comments• 91,650 potential impressions
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Facebook | Radio
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•Production: $50•Monitoring time: $100•Time spent: 1.5 hours•Total: $150•Potential Impressions: 91,650•CPM = $.002
•Production: $30,000-$50,000•Production Time: 2-4 weeks•30-second radio spot: $335•Total: A LOT•Potential Impressions: 138,600•CPM = $21.89-$36.31
So Far…• Where all that money goes
Facebook Twitter Tools Integration
• Why it’s totally worth it• How it stacks up against traditional media
@kkokoska // #schipulcon
2.) Budget Planning Breakdown
@kkokoska // #schipulconhttp://www.flickr.com/photos/37108241@N00/61056391/
We’ll Cover• Ways to look at it• In plain numbers• Things to consider
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Breakdown: By Category
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Breakdown: By Platform• Facebook• Twitter• Blogging• LinkedIn• Google +• Yelp
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In Plain Numbers• Calculate 10% and 12% of estimated
gross sales• Multiply each by the markup (not
margin) of your average transaction• Subtract rent• Take 10%
@kkokoska // #schipulcon
In Plain Numbers (cont.)
• Gross Sales: $5,000,000• Markup: 100%• Rent: $250,000• Marketing Budget: $250,000 (10%) -
$350,000(12%)
• SMM Budget: $25,000 - $35,000
@kkokoska // #schipulcon
Things to consider:• What are your objectives?• What is your overall marketing budget?• How are your current efforts working?• What are your resources?• Social media changes – A LOT!
@kkokoska // #schipulcon
3.) Ways to Measure ROI
@kkokoska // #schipulconhttp://www.flickr.com/photos/33275659@N02/3863299641/
A few truths• It’s not a thing• This will continue to change• Fans outspend non-fans by up 5 times
@kkokoska // #schipulcon
Media Equivalent Value
@kkokoska // #schipulcon
Social Media Impressions X
Equivalent Targeted
CPM= MEV
Data Value (Acquisition cost)
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ProportionalChannel
ValueX
Acquired Customer Numbers
= Data Value
Avg. Fan Value• Unlikes – per – Month / Total Likes =
Churn %• 1 / Churn = Fan Lifetime Length (FLL)• FLL x Posts-per-day = Opps-per-Fan (OPF)• OPF x CTR = Clicks-per-fan (CPF)• CPF x Conversion % = Sales-per-fan (SPF)• SPF x Avg. $ per Sale = Avg. Fan Value
@kkokoska // #schipulconDan Zarrella
Be Flexible
@kkokoska // #schipulconhttp://www.flickr.com/photos/33275659@N02/3863299641/
Takeaways• Social Media can be a major investment with a
major payoff.• Carefully evaluate your brand, resources and
budget before getting started.• Always Evaluate and Adapt.
@kkokoska // #schipulconDan Zarrella
Katrina (Scooter) KokoskaSchipul – The Web Marketing Company@[email protected]
@twitter // #schipulcon // http://bit.ly/schipslides
Thanks! Any questions?