1. THE TRUE VALUE
OF SOCIAL MEDIA
How social media is forcing us to redefine our marketing KPIs
©2010 22squared.

2. 1. We create too many dead-end experiences.
2. We don’t know how to evaluate things that aren’t
dead-end experiences.
THE PROBLEM (WITH MARKETING)
©2010 22squared.

3. http://www.youtube.com/watch?v=ERGrSQoY5fs http://www.youtube.com/watch?v=D3qltEtl7H8&feature=related
IT’S WELL
http://www.youtube.com/watch?v=gwaX40EnUdM
DOCUMENTED.
©2010 22squared.

4. CULPRIT
The Microsite
Engaging, fun, but not very shareable.
©2010 22squared.

5. CULPRIT The Online Game
Engaging, addictive, but not very shareable.
©2010 22squared.

6. CULPRIT The Online Video
Engaging, entertaining, but not very shareable.
(Unless it goes viral...which is a 1-in-a-million chance you can’t plan for.)
©2010 22squared.

7. DEAD-END
DIGITAL
Engaging digital actions are important. But what’s more important
is that we enable consumers to effortlessly share, adapt and evolve
our messages AND measure the influence they create.
©2010 22squared.

8. RETURN ON INVESTMENT
Digital Digital
Action Interaction Sale
Return on Interaction
Dead-end digital is similar to most advertising, and we measure it accordingly, judging its performance
based on the sales it directly motivates. But what about advocacy? What about the ripple effect?
Aren’t most purchases influenced by personal recommendations anyway?
We’re missing half the picture
©2010 22squared.

9. A DIFFERENT APPROACH
DIGITAL MEDIA MEDIA THAT’S SOCIAL
Objectives: Objectives:
Reach Advocacy
Awareness Loyalty
Coverage Trust
Engagement Influence
Measures: Measures:
# of visitors Sentiment
# of page views Comments
Time on site Feedback
Conversions Mentions
Organic Reach
Adapted from http://www.slideshare.net/LumensionSecurity/the-greatest-
question-since-the-meaning-of-life-what-is-the-roi-of-social-media
©2010 22squared.

10. RETURN ON INVESTMENT
Digital Digital More
Interaction Sale WOM Reco
Action Sales
Return on Interaction + Return on Influence
A more realistic way to assess value.
©2010 22squared.

11. OUR GOAL
Quantify the true impact
of digital and social
actions by moving
beyond immediate
impact to include return
on influence.
http://www.businessweek.com/magazine/content/09_22/b4133032573293.htm
©2010 22squared.

12. COOL IDEA…
BUT HOW?
©2010 22squared.

13. Visited this brand’s Downloaded a phone application
website or microsite from this specific brand
Posted a video online (e.g., Facebook,
YouTube) about this brand Watched commercials or videos
made by this brand on YouTube
Read a blog sponsored
Customized or designed a by this brand
product for this specific brand Played a web or browser game
sponsored by this brand
Posted a Tweet or RT about this specific brand
We studied
22
Made a charitable donation
Posted pictures online (e.g., Flickr, Picasa, directed through this brand’s site
Facebook) that focused on this specific brand
Participated in an augmented reality
experience sponsored by this brand
Wrote about this brand in a personal blog
Became a fan of this brand on Facebook
Sent a customized message sponsored by digital actions and their
this brand to a family member or friend effects on consumers.
Joined a Facebook group
focused on this specific brand
Posted a Facebook status
referencing this specific brand
Followed this brand on Twitter
O ered product ideas to this Voted on a product decision by this
brand in an open forum (e.g., brand (e.g., flavor, design, name)
mystarbucksideas.com)
Provided feedback on this Posted reviews about this brand
Joined an online panel or research
survey for this specific brand brand’s website
©2010 22squared.

14. 1.
1 2 3 4
Engage
Visited this brand’s
website or microsite
8.
Contribute
Posted reviews about this
brand
13.
Participate
Become a fan of this brand
on Facebook
16.
Create
Posted a Facebook status
referencing this specific brand
2. Watched commercials or 9. Provided feedback on this 14. Joined a Facebook group 17. Sent a customized message
videos made by this brand’s website focused on this specific sponsored by this brand to a
brand on YouTube brand family member or friend
10. Voted on a product decision
3. Downloaded a phone by this brand (e.g., flavor, 15. Followed this brand on 18. Wrote about this brand in a
application from this design, name) Twitter personal blog
specific brand
11. Joined a panel or research 19. Posted pictures online (e.g.,
4. Read a blog sponsored survey for this specific brand Flickr, Picasa, Facebook) that
by this brand focused on this specific brand
12. O ered product ideas to this
5. Played a web or browser brand in an open forum (e.g., 20. Posted a Tweet or RT about
game sponsored by this mystarbucksideas.com) this specific brand
brand
21. Customized or designed a
6. Made a charitable product for this specific brand
donation directed
through this brand’s site 22. Posted a video online (e.g.,
Facebook, YouTube) about
7. Participated in an this brand
augmented reality
experience sponsored by
this brand
©2010 22squared.

15. RECRUIT CUSTOMERS GROUP BY ACTIONS SURVEY ONLINE COMPARE GROUPS
n=408
ENGAGE
n=281 15 min. survey
CONTRIBUTE
ENGAGE PARTICIPATE
n=282 BRAND X
PARTICIPATE ADVOCACY
CONVERSATIONS
CONTROL
NEW CUSTOMERS
n=284 BRAND SPEND
CREATE
CONTRIBUTE CREATE
n=865
n=1,945 CONTROL
Recent customers of 52 brands
20+ years old | HHI $35k+ Control group representative of Survey included questions on how Compared groups to each other
M/F Split | Social Media Accounts brands found in test groups much they talked, recommendations, and made conclusions based on
brand spend, etc. significant di erences
©2010 22squared.

16. BRANDS WHOSE CUSTOMERS WE STUDIED.
Brands determined by a pre-study of social media actions among consumers.
©2010 22squared.

17. % Who Talked
Percent of those who initiated conversations about the brand.
Control Engage Contribute Participate Create
26% 47% 55% 53% 64%
1.8 x control 2.1 x control 2 x control 2.5 x control
Assuming a set of 100 Assuming a set of 100 Assuming a set of 100
consumers, 80 more consumers, 60 more consumers, 170 more
people talking than the people talking than the people talking than the
Engage set. Engage set. Engage set.
Source: Digital Actions and Their Effect on Advocacy, 22squared and Consumer Insights Inc., 2010.
©2010 22squared.

18. Via Instant
% Who Face to Via Social Message or Via Other
Via Email
Talked Face Media Texting Digital Means
Control
Where
26% 94% 2% 8% 3% 1% people
Engage
talked
47% 82% 9% 15% 5% 0% Participate and Create are the only
digital actions that generate
Contribute conversation both online and offline.
Proof that social media has influence
55% 71% 10% 27% 11% 3% beyond the digital space.
Participate
53% 75% 43% 22% 28% 9%
Create
64% 55% 48% 41% 19% 3% Source: Digital Actions and Their Effect
on Advocacy, 22squared and Consumer
Insights Inc., 2010.
©2010 22squared.

19. How much they talked
The number of conversations per 100 consumers
Control Engage Contribute Participate Create
42 conversations out of 110 conversations 123 conversations out of 260 conversations out of 270 conversations out of
100 consumers out of 100 consumers 100 consumers 100 consumers 100 consumers
Source: Digital Actions and Their Effect on Advocacy, 22squared and Consumer Insights Inc., 2010.
©2010 22squared.

20. Social media actions generated
nearly 2.5 times more
conversations per 100
consumers than the lower
involvement engage group.
Control Engage Contribute Participate Create
42 conversations out of 110 conversations 123 conversations out of 260 conversations out of 270 conversations out of
100 consumers out of 100 consumers 100 consumers 100 consumers 100 consumers
Source: Digital Actions and Their Effect on Advocacy, 22squared and Consumer Insights Inc., 2010.
©2010 22squared.

21. How they influenced purchases
Percent who spurred a purchase
% who talked
% who spurred a purchase
Control Engage Contribute Participate Create
11%... 20%... 26%... 32%... 35%...
influenced a transaction influenced a transaction influenced a transaction influenced a transaction influenced a transaction
26% talked 47% talked 55% talked 53% talked 64% talked
©2010 22squared.

22. Influenced Purchases
The number of purchases influenced per 100 consumers
Social actions yield about 4x as many influenced
purchases as dead-end digital engagements. 83 95
Purchases
Purchases
Influenced Influenced
22 32
5
Purchases Purchases
Purchases
Influenced
Influenced Influenced
Control Engage Contribute Participate Create
42 conversations out 110 conversations out 123 conversations out 260 conversations out 270 conversations out
of 100 consumers of 100 consumers of 100 consumers of 100 consumers of 100 consumers
©2010 22squared.

23. And, they spend more too...
Median “Spend Index” by groups:
Socially involved customers spend more and drive
higher spend levels among the people they influence. 247
126
100
Control Group Engage + Contribute Participate + Create
Median dollar value associated with customer groups. Self-reported customer includes dollars spent, anticipated spend, and referred dollars through recommendations.
Source: Digital Actions and Their Effect on Advocacy, 22squared and Consumer Insights Inc., 2010.
©2010 22squared.

24. SO WHAT’D WE LEARN?
©2010 22squared.

25. 1 Take a broader view of value.
We have to try to understand the impact of social media beyond the initial
interaction and through the reverberating influence it has on consumers. We can’t
only apply traditional digital metrics to social interactions.
Digital Digital More
Interaction Sale WOM Reco
Action Sales
Return on Interaction + Return on Influence
Return on Investment
©2010 22squared.

26. 2 Social media actions pay.
It pays to leave the comfort of your own website or microsite and live in the consumer’s world of social
media. Can you screw it up? Sure. But some simple principles, like being honest and interesting and adding
value to people’s lives, can go a long way in the social space.
in more places
Gets more people talking
more times
for more sparking more purchases
money
©2010 22squared.

27. 3
Move from dead-end digital to social
We’re not saying that brands should stop being helpful or entertaining. That they should stop making cool
apps or killer videos. We’re just saying that you should do it in the social space and let people mess with it.
The more you get them participating and creating, the more you’ll get in return. DO MORE OF THIS...
“I follow them on Twitter and ask for “Purchased a co ee, was able to ask “I participated in their design the next “I posted pictures of my many pairs of
advice on certain products. The agents about di erent varieties and got what I donut competition, as well as enjoying Nikes.”
are usually very helpful and informative.” wanted!” their delicious co ee on a regular basis.”
“I sent an email about an ice cream “I ordered personalized M&M's for a “I occasionally drink Mountain Dew and I “I wrote to Starbucks encouraging them to add more
giveaway on Facebook.” Valentine's Day gift. I also posted this on voted in a contest to determine a new Gluten Free products to their o erings and to complain
my Facebook status and copied the URL flavor.” when the GF orange cake was removed from their
addy and sent out to a few friends.” product o erings.”
Source: Digital Actions and Their Effect on Advocacy, 22squared and Consumer Insights Inc., 2010.
©2010 22squared.

28. 2 QUICK NOTES:
This is changing: These are good:
http://www.slideshare.net/
LumensionSecurity/the-
greatest-question-since-the-
meaning-of-life-what-is-the-
roi-of-social-media
http://www.slideshare.net/
yongfook/social-media-roi
As social media increasingly becomes the backbone of
our digital experience, consumers will migrate to being
more active participants and creators of content. This
could already be obsolete.
©2010 22squared.

29. FOR MORE ON BUILDING ADVOCACY, VISIT:
http://www.22squared.com/whoweare/agency-model http://www.slideshare.net/brandonmurphy/the-friendship-model
©2010 22squared.

30. ©2010 22squared.