Bringing Smart and Sexy Back: Pay-Per-Success Model in Social Media Advertising

Bringing smart & sexy back The pay-per-success model in social media advertising Octavian MihaiRock&Social Internet Week New York 8 June 2011

Social media knowledge Agencies Students Not sure What do you expect?

Short story of R&S Social media & Brand community model Pay-per-success model & Business case Q&A Fun, fun, fun!

March 2011 Branding by our patient partners StudioFeed.ca

Be global Social media Pay-per-success Work with respectful clients

R&S 3 tier services STRATEGY PLANNING INSIGHTS Community management Training Public Relations SM development Facebook apps Mobile apps

R&S 3 tier PARTNERSHIP DIRECTCLIENTS AGENCIES PARTNERS

Montreal New york Guadalajara Paris

We are in the business of brand community building.

Not (only) about conversations

(for lack of a better and widely accepted word)

Is about the democratization of ideas

Is about the creation of communities of ideas

And from a business perspective

Relationships between consumers and your brand

Social media facilitates the creation of a consumer brand community

YEEEEE… FUN, FUN, FUN! Gregory A. Perez

These are your employees, your consumers, your regulators

See your brand community as a SOCIAL CRM system on steroids

Social media touches every aspect of your business

hr Marketing sales Customer support Product, etc

A simple brand community model

Brand community is a strategic approach to business that happens to use social media

Decrease marketing and sales costs

Increase brand equity and sales

Provide detailed business intelligence

Increase employee engagement and decrease hr costs

Brand community attributes SIZE ENGAGEMENT REACH platforms

1. Choose a brand community platform

General brand community AGGREGATOR : FACEBOOK, ELETTER, FORUMS…

SOCIAL CRM SAP FACEBOOK & TWITER BUSINESS ADD-ONS

2. Create your ambassador VIP community

VIP Ambassador community DETECT ENGAGED MEMBERS FANGAGER.com

VIP Ambassador community PRIVATE VIP COMMUNITY ThisWeekInStartups.com

3. Detect and build your influencers community

MVP INFLUENCER community INFLUENCERS AROUND YOUR BRAND COMMUNITY Radian6

Generate feedback loop between your brand communities to increase size, engagement and reach

Link remuneration with result milestones

Everybody is focused on results (agency and client)

Remember that Social media touches every aspect of your business

Hrkpis No Qualified CVs Employee engagement

Marketing kpis Brand awareness MARKET SHARE VS COMPETITION

Sales kpis Qualified leads Customer acquisition

Community based kpis size Engagement % Reach

e.g. client pays 40% - 60% at first Rest only after and if 40% - 60% of results are achieved

e.g. agency receives 40% - 60% at first for production and to start the campaign Rest after results are achieved

A Simple pay-per-success Business case & process

Brand & Category Development Index (BDI& CDI) Growth Potential Index (GPI)

Competitor analysis Demographic analysis

CTR, CPC, CPM, conversion rates, cost per acquisition, cost per lead profit margins

Example Say, client needs to expand her facebook brand community

Example Gather all necessary benchmarks: competitor analysis, demographic analysis, etc

Tips to define kpis Sell an analysis mandate Run an initial campaign Benchmark on competition and previous efforts

STEP 2 Define your client’s kpis

Example Community size: 50K Engagement: 10%

STEP 3 analyse benchmarks & negotiate

Example Qualified member: $0.75 Engagement If under 5% then $0If 5-10% then + $1 / engaged member If higher than 10% then + $1.2 / engaged member over 10%

Example a. Qualified member: $0.75

Example b. Engagement / monthIf under 5% then $0If 5-10% then + $1 / engaged member If higher than 10% then + $1.2 / engaged member over 10%

Example For 50 000 & 10% over 3 monthsestimated campaign cost $47.500

projections Client was ready to pay $70 000 Objectives50 000 & 10% = $47.500 Result60 000 & 15% = $59.000

Don’t you know that the time has arrived…

Be creative Monitor Optimize Iterate fun fun fun

pay-per-success phases Monitor and analyze Define your client’s kpis Analyze and negotiate Build remuneration model Execute campaign

pay-per-success rules ,[object Object]

Higher maximum budget – keep incentives up – min 20%

Gather best data and negotiate

Agency must have strategic lead

Client must pay fast,[object Object]

Pay-per-success Walks the talklinking remuneration with advertising milestones

The Brand community approach helps you Ask the right questions

social media Advertising is about creativity and building a community not only about Ad-words and pay-per-click.

Creativity can be used everywhere even in your business model.

Champion pay-per-success & brand community building Stay smart & Sexy keep on Having fun

2011 official opening in new york… Starting this fall

2012 Back at Internet week the story will continue!

Bringing Smart and Sexy Back: Pay-Per-Success Model in Social Media Advertising

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