May 14th, 2012 by Mathias Buerk
Good numbers, bad numbers: Two recent studies are the first to offer a comprehensive overview of the status quo of Germany’s businesses’ social media efforts.
For instance our industry’s association Bitkom found out that 47 percent of the 3,6 Mio businesses in Germany uses Facebook, Twitter, or Blogs. “This number at first sight doesn’t look bad”, net economist Holger Schmidt writes. “How little serious businesses take social media can be seen in staff numbers”. Another result of the survey is that 80 percent of the businesses leave their social media management to only one or two employees.
Graphic “Social Media Campaign – The Big Idea”
“Especially low the staff numbers are in manufacturing sector, while relatively moderate in the service industry”, Schmidt writes. What is missing most is a clear-cut organizational structure and the lack of any goals or rather Key Performance Indicator’s (KPI’s). “Two thirds of those questioned didn’t delineate definite goals of what should be achieved. Even in harsh antagonism to the means applied, the expectancies are high: Almost 90 percent of enterprises assume increasing relevance of social media.”
Especially the lack of KPI’s might constitute a serious problem soon, as only distinct indicators measuring and analyzing success and impact of social media campaigns, allow to seriously calculate the Return on Investment (ROI). Indispensable to it logically is a solid social media monitoring evaluating the respective KPI’s (gridmaster KPI Dashboard).
The current inquiry “Turning Buzz into Gold” by business consultancy McKinsey & Company details out, how big the need to catch up in the German economy is. Only 37 percent of the businesses communication via Facbook, Twitter, and blogs defined KPI’s for their social media usage. A mere 20 percent measure the ROI.
The hopes lying on social media, nevertheless, are very high. 71 percent of the 200 businesses that have been asked in the survey speculate on a “significant profit potential”.
However, most companies remain realistic in terms of their status que. E.g. only 10 percent of the German businesses believe they can increase their results with their actual social media activities.
The solution: Companies have to invest in manpower and monitoring. Only this way the particular activities can be improved and their success measured.
March 27th, 2012 by Sten Franke
Google has identified the signs of the time. The question to Return on Investment (ROI) in social media campaigns probably is one of the most important topics this year, as many enterprises crave for simple and working solutions.
For instance a recent research by Iron Mountain concludes that most European businesses yet don’t know how to handle data of social networks like Facebook, Twitter, or LinkedIn. “Indeed 94% of the questioned German companies (Europe: 86%) are aware to file communication in the social media channels as a formal business process” the paper states, but “at the same time 72% of the German businesses (Europe: 63%) don’t consider themselves as capable to capture the shared data and information of social networks accordingly”.
In fact tools and solutions that measure the ROI of almost all social media campaigns exist for long. Our gridmaster is an example to mention here.
Offers like ours and those of other monitoring tools satisfy an ever growing need. Google wants to have their share of the market and consequently drill with Google Analytics. Soon it is supposed to measure ROI, only on least significant sources like Blogger.com, however. It cannot perform a deeper analysis of top players like Facebook or Twitter yet.
“Google Analytics claims to close the gap between social media and hard business KPI’s”, t3n writes. “It shall be accomplished by not only measuring the traffic that arrives via different social media channels, but also tracking it further.” That’s how direct inferences onto conversion rates become possible.
Though, the ROI is only one side of the coin, the other are Key Performance Indicators (KPI’s). They cannot be neglected in relevant and traceable measurements of success of social media campaigns. If you want to quantify the latter, Google Analytics doesn’t help you yet. Then you better turn to established monitoring tools, like our gridmaster for instance. They can assess buzz, demography, sentiments and semantic data on top of it. Only they enable you to place activities sustainable and targeted. Considered globally it’s all about the increase of brand awareness, sales, profit, customer satisfaction and loyalty. Still countless businesses evaluate the success of their social media campaigns with the mere mass of the three f’s: Friends, Followers, and Fans. Whether on Facebook or Twitter – the bare amount of them doesn’t indicate their interaction rate.
The new Google tool apparently can’t handle the Standard KPI’s. I.e the new tool only touches the surface of social media data. As easy to navigate Google Analytics may be, it can’t replace a complex professional tool. Indeed, the new service of the web company can possibly give the lots of rudimentary monitoring offerings lacking depth a hard time.
March 20th, 2012 by Sten Franke
How to reliably measure the success of your own social media campaigns? Still many decision-makers take the numbers of fans and followers as a serious indicator for your brand’s success in social networks.
Return on Investment (ROI) in many businesses is set as a Standard-Key Performance Indicator (KPI), not including social media campaigns and activities, though. King Fish Media found out not even half of businesses measure the ROI of their respective social media campaigns.
This is a fact irrespective of social media intelligence or rather monitoring tools like the gridmaster that are available for a long time already and can analyze your ROI or KPI’s easily. In addition to these tools, the free ethority Social Media ROI Calculator may be used.
These 5 Standard-KPI’s can be applied to most relevant social Networks.
1. Rate of interaction (Conversational exchange) – Amount of replies and comments
The amount of Replies to a tweet for Oosterveer is the most important social media KPI. The answers to a tweet of your brand show how many are willing to engage with the brand, to interact with it or rather exhibit an increased interest in it.
2. Direct Reach – Amount of fans and followers
Even though you should be careful not to take the quantity of your fans too serious when they have been amassed via lotteries and other campaigns, the reach – i.e. the number of individuals who might be reading each tweet or post – remains an important indicator.
3. Sharing or content amplification
The number of shares per post. Each post or tweet creates its own tiny social network, as it is shared, retweeted, or given a +1 via Google+. Each recommendation by a fan reaches out to his entire personal network. This number depicts how often a post has been shared, retweeted of recommended on Google+. No matter where you posted initially.
To measure the sentiment or tonality of a post or tweet a complex analytical tool like the gridmaster is required. A decent analysis of tonality long ago had to become a standard at reputable measurements of KPI’s in social media campaigns, as everybody should be interested whether those innumerable conversations about your brand or campaign tend to be positive or negative.
5. Likes or content appreciation
This is a factor especially for twitter. How often did somebody favor your tweet? This shows inhowfar your messages are useful or entertaining. Only those tweets that entertain or contain relevant information are being favored.
March 1st, 2012 by Sten Franke
As crazy as it sounds: Even global enterprises, who never would make the least decision without investing in extensive prior data analyses and tools to fend off all eventualities, invested in social media campaigns and activities without targeting aims, and define and measure the success thereof.
Though, every responsible marketing, PR or social media manager has to abide to the demand of Return on Investment (ROI) and Key Performance Indicators (KPI). ROI in many companies still is a term that not all decision-makers can depict. King Fish Media found out that not yet half of the companies measure the ROI of their social media campaign, disregarding social media intelligence and monitoring tools – like the gridmaster – that can analyze ROI easily. The free ethority social media ROI calculator can be used anyway.
Of those companies that are measuring the ROI of their campaign, a third stated that their activities worked or rather proceeded according to their plan. 13% even had results exceeding the expectancies.
Of particular interest is the latter group as the future is theirs. King Fish Media – for instance – found out that 29% of the questioned have to account for a positive ROI to receive a social media budget the following year.
ROI is only one point though, another are the KPI’s. Without them, hardly any relevant and comprehensive measurement of success of social media campaigns is possible. Only that way, activities can be placed sustainably and targeted. Globally what counts is to increase brand awareness, sales, profit, customer satisfaction and loyalty. However, many businesses define the success of their campaigns only by amassing the three f’s (friends, follower, fans). No matter whether on facebook or twitter, the mere amount of the fans or followers doesn’t illustrate the level of interaction. Often, it is standard marketing to increase number of a brand’s fans by advertisements or lotteries. The mass of generated fans amounted like this doesn’t tell how valuable and sustainable it is, when your aim is to increase brand awareness, sales, profit, customer satisfaction and loyalty. I.e. fans recruited by lotteries show actually little interest in your brand. Community management that is authentic and based on dialogue can animate your fans to raise their level of interaction: you’re winning when your fans become so-called superfans, who contribute to building and creating a worthy brand-community by showing above-average engagement. Whether your own community has reached this state, or rather how your community matured already can be seen with global and industry-specific KPI’s. ethority over the past years has developed a substantial set of tools and industry-specific standard KPI’s. We will report further about them in this blog.
I am convinced that the coming 18 months ever larger budgets will be allocated to social media campaigns. This, in turn, means that general, and at the same time individual KPI’s have to be defined urgently, to actually measure the success of social media activities and campaigns.
February 21st, 2012 by Sten Franke
ROI measurement will soon be crucial to any social media marketing strategy and analysis. In my opinion, the most recent study conducted by King Fish Media leads only to this conclusion.
The marketing agency King Fish Media found that, up to now not even half of all businesses measure the ROI of their Social Media campaigns, although for long there are already Social Media Intelligence or Monitoring tools which can easily analyze Return on Investment – like ethority’s gridmaster. In addition to these tools, the free ethority Social Media ROI Calculator may be used.
A third of the businesses that have calculated the ROI of their campaigns stated that their measures have had the expected impact. For 13 percent the results even exceeded all expectations.
Now, these businesses are particularly interesting because they are the future. Analysts of King Fish Media revealed that 29% of the surveyed companies need to show a positive ROI to receive their Social Media Budget next year.
The most important findings of the study were:
1. Social Media ROI tracking will become much more relevant in the future because half of the surveyed companies still do not conduct ROI analyses.
2. It can be predicted, however, that more than the current 29 percent need to develop an appropriate ROI to be able to plan with respective budgets for future campaigns.
3. The time of social media success being determined only by the number of fans, friends or followers or by rule of thumb will pass.
And this is just as well, because everybody profits from a reasonable ROI measurement strategy and analysis: Users, because campaigns are specially tailored to their needs, and businesses, because they can use their budget more efficiently.
March 24th, 2009 by Mo
Original Article by David Nelles
Social media marketing only works when a user gets a real added value through his/her engagement. This means: The interaction with brands in user generated channels must result in a measureable ROI for users, as to achieve successful marketing in this area. Thereby, in his latest post – Tom Smith opts for a change in perspectives regarding this matter. It’s not about the added value of social media for companies but instead it’s more about the added value of big brands’ social media activities for users. Smith derives eight advantages for consumers through social media marketing:
1. Social media can transcend the “black box brand” of the past into a transparent dialog partner. Social media enables user a peek behind the scenes of a brand.
2. Social media differentiates bad products from good ones. Thanks to social media, it’s easier for users to get information about specific products before buying decisions are made.
3. Social media is the perfect channel for customer service. Comcast, Dell and Southwest are few of the best examples. The basic for brands should be to actively present themselves where the target group is, as to always be there for the costumers.
4. Social media allows users to take part in product innovation. The keyword is crowdsourcing for the creation of better products. Tchibo, Dell and Procter & Gamble show how companies can involve consumers in product development.
5. User decides if he/she wants to interact with brands. In classical online marketing, users didn’t have the power of choice to decline massive brand messaging.
6. Social media efforts of big brands are the prerequisites for a free of charge usage of Facebook&Co. However, for a continuous availability and development of social media platforms developers need the money, which would come from a booked and well-planned marketing campaign of big brands.
8. Brands in social media are alive through users. One way or another, users’ conversations about brands would take place, regardless of whether brands are choosing to be actively engaged or not.
In the end, it’s quite evident: Social media marketing i.e. active brands in social media offer users a real numerable added value. It starts with transparency through direct customer service and the power of choice, where users can decide for themselves whether they want to be exposed to brand messaging: users benefit obviously from this 2.0 brand communication. This user’s ROI is the key indicator for the success of a brand in user generated media. Brands communication in social media ignites two-way added value, both for users and brands. This applies only, if marketers abide to above mentioned added values. Hence, keywords like transparency and authenticity should be the core focus.