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The VALUE of Search and Social
Gillian Muessig, President & Co-founder, SEOmoz
GlobalEIM| November, 2011
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ROI
ROI is a business metric,not a media metric.
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ROI
ROI is media agnostic100%
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ROI
Every resource has a cost
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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
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NOT ROI
You Get the Idea
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NOT ROI
Those are non financial KPIsnot ROI
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ROI
Financial ROI of Social Media
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ROI
Average sales before SMM initiative
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ROI
Average sales after SMM initiative
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ROI
AfterBefore
Avg growth 10% Avg growth 16%
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ROI
If your cost
<
Increases receipts
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ROI
You have achieved apositive ROI.
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ROI
Ok. We’re done.Bye bye.
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ROI
What?You want more?
Ok.
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Positive KPIs
An increase in POSITIVE KPIs
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Positive KPIs
Number of Customers
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Positive KPIs
Average Dollar Value per Purchase
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Positive KPIs
Customer Lifetime Value
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Positive KPIs
Increased Average Margin
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Negative KPIs
Decrease in returns
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Negative KPIs
Decrease in customer complaints
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Negative KPIs
Decrease in left over stock
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Negative KPIs
Decrease in bad sentiment
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Negative KPIs
Decrease in need for paid ads
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Negative KPIs
Decrease in recalls or failed new products
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ROI
Ok. NOW we’re done.Bye bye.
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Think more deeply about VALUE
No. Wait. There’s more.
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LINKS: HOW WE GET AROUND
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LINKS: VOTES OF POPULARITY
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LINKS: A REALLY BAD SIGNAL
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LINKS: A REALLY BAD SIGNAL
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SOCIAL SIGNALS ARE BETTER
A BETTER SIGNAL
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TWITTER: <60 SECONDS
Users: 50mm 750mm 200mm 120mm 10mm
Users: 14mm Millions 14mm 6.5mm
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FASTER DELIVERY
NEWS SOURCE
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ROI
So what good is it to me?
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FOCUS GROUPS ARE BOGUS
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FOCUS GROUPS ARE UNCOMFORTABLE
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YOU’RE NOT PARANOID
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IT’S THE BEST WE HAD
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FASTER ANSWERS, LARGER DATASETS
REPLACES FOCUS GROUPS
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CROWD SOURCING
Image credit: http://www.businessesgrow.com/2011/08/31/the-top-five-crowdsourcing-mega-trends/
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FUND RAISINGWITHOUT
MIDDLEMEN
Image credit: http://www.psn.ie/parents_pa/other-fundraising-events.html
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CROWD SOURCE SIMPLE TASKS
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CROWD SOURCE SIMPLE TASKS
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CROWD SOURCE MARKETING
Involvement Marketing
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What color do you feel like this morning?
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A SIMPLE QUESTION
What color do you feel like this morning?
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MARKETERS SOULS SING!
More than 1000 responses within 1 hour
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WHAT CAN YOU DO WITH IT?
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HEADS UP, CORPORATE BUYERS!
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INDUSTRIAL DECISIONS
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ASK US; WE’LL TELL YOU
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GET SOME PERSPECTIVE
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MASS MARKETED PRODUCTS
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INDUSTRIES IN NEED OF PIVOTING
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SOME PEOPLE DON’T ASK
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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
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ONLINE REPUTATION
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FINAL THOUGHTS
The ROI of Social Media = Adjusted Gross Receipts
less Cost of Initiative
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FINAL THOUGHTS
The VALUE of Social Media is much more
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ROI
So how do I sell this to a clientor my boss?
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ROI
Why should I spend money on SEO?
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CTR
We’re all clicking on Organic SERPs
Organic
Paid
<20% of marketing budget
>80% of marketing budget
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CTR
All the money is spent on Paid Ads
Organic
Paid
88% of marketing budget
12% of marketing budget
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CTR
SEO represents ahuge potential
for ROI
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ROI
Fine. But I do really need to be #1?
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CTR
Do I really have to rank #1?
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ROI
How will I know SEO made me money?
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ROI
Look for the lift
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ROI
Yes! That lift!
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PROMODO12
• Twitter: @SEOmom
• Blog: www.seomoz.org/blog
• Email: [email protected]