ROI of Social Media describes the Conversation Hierarchy and the factors that influence the individual as they approach the point of decision

1. The ROI of Social Media: How to improve the return on your social marketing investment Conversation Hierarchy 1

2. Who connects to whom? 2 Distribution Partners Brands (Own & Competition) Partners Exogenous

3. What is the Conversation Hierarchy? 3 Conversation Hierarchy helps marketers to track conversations structured based on the requirements of the business Valuable for listening post and SEO Not all businesses will need to track all components some will be more important than others depending on the category and type of business Individuals, consumers and influencers are key components of the Media Engagement Framework* and play a key role when developing an effective, measureable marketing strategy *Search ‘Media Engagement Framework’ on SlideShare for more or join us at www.ROIofSocialMedia.com

4. Consumers in the Conversation Hierarchy Measuring success in each of these dimensions can help marketers to gauge their success at reaching consumers with appropriate messages Tracking social marketing conversations made by consumers can be decomposed into the following dimensions, depending on the category Segments Consumer audience-focused Subject-specific Potential influence on consumer purchase behavior 4

5. Impact ofCategory in the Conversation Hierarchy Category-level conversations impact the size of the category especially relevant for business-to-business marketers analyst conversations can influence the growth of the category Typical persona is non-brand specific Include comments by associated or paid celebrities impacts brand Tiger Woods, Michelle Yeo, Oprah Winfrey industry analysts and personalities Impact entire category Forrester, Gartner Group, Guy Kawasaki 5

6. Brand (Own & Competitive) Brand specific conversations specifically aid one brand over another. Just as in traditional media, there can be spill-over effects to all brands in the category Public advocate of brand/Ambassador programs Aspects of engagement Platform Followers Frequency of posts Education Copy-writing Sponsorship Full-disclosure 6

7. Distribution channel partners may have strong advocacy/influencer programs that can drive value for your brand Impact brand perception Control of the messages are now delegated to the channel partner Financial incentive relationship Can be positive or negative, depending on competitive relationship Distribution 7

8. Developing social marketing programs with relevant partners can help both partners to leverage the social graphs of the other partner to their advantage. This allows access to new fans that may be otherwise difficult to reach: Impact brand perception Customer Satisfaction metric Not under direct control Possible financial incentive relationship Allows leveraging partner’s social graph Acknowledge public social connection @ mentions, complements & praise Partners 8

9. Exogenous 9 External factors often have significant influence over the conversation in a category and can drive the tonality and volume of conversation influencing a single brand or the whole category: Predictable & unpredictable weather, seasons, holidays, Gov’t Reg Beyond control May impact any / all Brand, competitor brand, distribution, or partner Cross channel TV advertising regulations New social media technologies and services

10. Where to Find Us 10 Steven Groves SGroves@SocialMarketingConversations.com Guy R. Powell GPowell@DemandROMI.com Jerry DimosJDimos@LitmusGroup.com DemandROMI Prove and improve your marketing effectiveness +1 404-816-4344 www.DemandROMI.com Social Marketing Conversations ROI-based social conversations +1 602-903-1010 www.SocialMarketingConversations.com Litmus Group Turning Strategy into Performance +65 6680 6550 www.LitmusGroup.com Community: ROIofSocialMedia.com Facebook: Facebook.com/ROIofSocialMedia Twitter: @ROISocialMedia #ROISM #ROMI