The VALUE of Search and Social

Gillian Muessig, President & Co-founder, SEOmoz

GlobalEIM| November, 2011

ROI

ROI is a business metric,not a media metric.

ROI

ROI is media agnostic100%

ROI

Every resource has a cost

NOT ROI

Non-financial positive and negative KPIs

Clicks, hits, complaints, CTR, press, content views, brick and mortar store numbers, employment apps,

FB friends, likes, comments, and shares, blog comments, UGC submissions, social mentions,

twitter followers, tweets and re-tweets

NOT ROI

You Get the Idea

NOT ROI

Those are non financial KPIsnot ROI

ROI

Financial ROI of Social Media

ROI

Average sales before SMM initiative

ROI

Average sales after SMM initiative

ROI

AfterBefore

Avg growth 10% Avg growth 16%

ROI

If your cost

<

Increases receipts

ROI

You have achieved apositive ROI.

ROI

Ok. We’re done. Bye bye.

ROI

What?You want more?

Ok.

Positive KPIs

An increase in POSITIVE KPIs

Positive KPIs

Number of Customers

Positive KPIs

Average Dollar Value per Purchase

Positive KPIs

Customer Lifetime Value

Positive KPIs

Increased Average Margin

Negative KPIs

Decrease in returns

Negative KPIs

Decrease in customer complaints

Negative KPIs

Decrease in left over stock

Negative KPIs

Decrease in bad sentiment

Negative KPIs

Decrease in need for paid ads

Negative KPIs

Decrease in recalls or failed new products

ROI

Ok. NOW we’re done. Bye bye.

Think more deeply about VALUE

No. Wait. There’s more.

LINKS: HOW WE GET AROUND

LINKS: VOTES OF POPULARITY

LINKS: A REALLY BAD SIGNAL

LINKS: A REALLY BAD SIGNAL

SOCIAL SIGNALS ARE BETTER

A BETTER SIGNAL

NEWS EVENT

TWITTER: <60 SECONDS

Users: 50mm 750mm 200mm 120mm 10mm

Users: 14mm Millions 14mm 6.5mm

22 MINUTES

RADIO: 1+ HOURS

TV: PM NEWS

TV: PM NEWS

SOCIAL SIGNALS

FASTER DELIVERY

NEWS SOURCE

GOOGLE PIVOTS

IMMEDIACY

SENTIMENT

ROI

So what good is it to me?

FOCUS GROUPS ARE BOGUS

FOCUS GROUPS ARE UNCOMFORTABLE

YOU’RE NOT PARANOID

IT’S THE BEST WE HAD

FASTER ANSWERS, LARGER DATASETS

REPLACES FOCUS GROUPS

CROWD SOURCING

Image credit: http://www.businessesgrow.com/2011/08/31/the-top-five-crowdsourcing-mega-trends/

FUND RAISINGWITHOUT

MIDDLEMEN

Image credit: http://www.psn.ie/parents_pa/other-fundraising-events.html

CROWD SOURCE SIMPLE TASKS

CROWD SOURCE SIMPLE TASKS

CROWD SOURCE MARKETING

Involvement Marketing

ASK ME ANYTHING

What color do you feel like this morning?

A SIMPLE QUESTION

What color do you feel like this morning?

MARKETERS SOULS SING!

More than 1000 responses within 1 hour

POETRY

WHAT CAN YOU DO WITH IT?

HEADS UP, CORPORATE BUYERS!

INDUSTRIAL DECISIONS

ASK US; WE’LL TELL YOU

GET SOME PERSPECTIVE

MASS MARKETED PRODUCTS

OPM

INDUSTRIES IN NEED OF PIVOTING

SOME PEOPLE DON’T ASK

THOUGHT LEADERS

THOUGHT LEADERS DON’T ASK DIRECTIONS

Apple - BMW

Crowd source everything – R&D, improvements, innovations, marketingGovernments, NPOs, for-profits

Basic Necessities - no need to crowd source around these, except perhaps marketing

BMW

FINAL THOUGHTS

ONLINE REPUTATION

FINAL THOUGHTS

The ROI of Social Media = Adjusted Gross Receipts

less Cost of Initiative

FINAL THOUGHTS

The VALUE of Social Media is much more

ROI

So how do I sell this to a clientor my boss?

ROI

Why should I spend money on SEO?

CTR

We’re all clicking on Organic SERPs

Organic

Paid

<20% of marketing budget

>80% of marketing budget

CTR

All the money is spent on Paid Ads

Organic

Paid

88% of marketing budget

12% of marketing budget

CTR

SEO represents ahuge potential

for ROI

ROI

Fine. But I do really need to be #1?

CTR

Do I really have to rank #1?

ROI

How will I know SEO made me money?

ROI

Look for the lift

ROI

Yes! That lift!

PROMODO12

• Twitter: @SEOmom

• Blog: www.seomoz.org/blog

• Email: gillian@seomoz.org