A New Framework For Measuring Social Media Activity

by Richard Pentin, Senior Planner,TMW

on behalf of the IAB Social Media Council

overview
1. Why do we need a framework? 2. The iab measurement framework 3. Guidelines to defining KPIs 4. Putting theory into practice

1. Why do we need a framework?

why do we need a framework?

EFFICACY

ACCOUNTABILITY

INTERPRETATION

INDUSTRY SPECIFIC REASONS

STANDARDISATION

WHY?

COMPANY SPECIFIC REASONS

OPTIMISATION

BENCHMARKING

2. Introducing the iab framework

the iab framework

intent

awareness appreciation action advocacy

Define core KPI metrics by social media platform (soft metrics & hard financials)

benchmark

Establish intentions and objectives in order to define which KPIs are most pertinent

Compare benchmarks with other SM activity, channels, industry averages

intent
Without clearly defined objectives we have absolutely no criteria on which to evaluate success

intent

Establish intentions and objectives in order to define which KPIs are most pertinent

intent
To build brand awareness? To generate buzz, advocacy or WOM? To generate brand engagement? To shift consumer perceptions?

Your intent should dictate which KPIs are most pertinent

To influence key opinion formers? To generate leads or build prospect base? To stimulate dialogue or relationship with prospects To encourage participation for social event? To manage brand reputation? To divert a PR crisis? To engender customer loyalty? To uncover customer or product insights? To enhance customer service?

intent

But the trick here is to collate your KPIs into more meaningful groups in order to tell a bigger story

The 4 As
awareness appreciation
Engagement and appreciation of social media platform

awareness appreciation action advocacy

Define and measure core KPI metrics by social media platform (soft metrics & hard financials)

Awareness of social media platform

action
Solicits a response or influences purchase behaviour in some way
APPRECIATION

advocacy
Creates WOM or stimulates advocacy

KPIs can be assigned to one or more of these 4 As to tell a bigger story

The 4 As
The importance you place on the 4 As will depend on your original intent
INTENT 1
WEIGHTING OF METRICS

INTENT 2

Awarenes s Appreciation Action Advocacy

Activity designed to generate buzz and WOM might focus more on awareness, appreciation and advocacy metrics

Activity designed to generate leads may be much more weighted towards action metrics

benchmark
Without comparative benchmarking most metrics are completely meaningless

benchmark

Compare benchmarks with other SM activity, channels, industry averages

What is this?

An atom, a ping pong ball or a beach ball?

The diameter of Uranus is 51,118 km Its distance from the sun is 19 AU

Now for some interesting but fairly meaningless metrics

Uranus approximate density is 1.27 grams per cubic centimeter

URANUS!

Atmosphere: 82.5% molecular hydrogen, 15.2% helium and 2.3% methane

Uranus travels at an average speed of 15,290 miles per hour The mass of Uranus is about 8,684.9.

Average temperature -350 degrees.

Metrics only have real meaning when compared to something else

benchmark
So, how does this social media platform compare to other social media platforms used by your brand?

Only compare with other platforms which share similar objectives

benchmark
How does this social media activity compare to other marketing channels?
ADVERTISING EVENT MARKETING DIRECT MARKETING

PUBLIC RELATIONS

MARKETING COMPARATIVE CHANNEL BENCHMARKIN G

EMARKETING

Only compare with other channels which share similar objectives, otherwise its not comparing like-for-like

SALES PROMOTION
CUSTOMER BASE

SOCIAL MEDIA

CRM

benchmark
How does this social media activity compare to your competitors?

Only compare your platform to competitors where they share similar objectives

benchmark
How does it compare to historical data?
Social Media Metric

?
Time

Has this activity improved since last measurement period?

3. Guidelines to help define KPIs

defining KPIs

3 parameters for defining KPIs

by social media platform (e.g. blog, microblogging, community forum, social network, fanpage, video sharing site, branded channel widget/application etc) by 4As by soft metrics AND hard financials

defining hard financials

awareness appreciation
Cost per Engagement (CPE)

awareness appreciation action advocacy

Define and measure core KPI metrics by social media platform (soft metrics & hard financials)

Cost per Impression (CPI)

action
Cost per Lead (CPL)

advocacy
Cost per Referral (CPR)

APPRECIATION

defining KPIs

The following tables are intended to outline some of the KPIs at your disposal. It is only intended to be a helpful guide rather than an definitive list Select the KPIs most pertinent to your objectives or feel free to add KPIs of your own!

social network KPIs

i
SOCIAL MEDIA PLATFORM AWARENESS INTENT Awareness of social media platform Search rankings Referrals from brand website Unique visitors Reach Impressions APPRECIATION Brand engagement and appreciation of social media platform # of fans # of subscribers # of comments # of discussion threads Interaction rates # of active users Poll votes Page views Videos viewed Return visits Dwell time # of competition entries UGC uploads/submissions Cost per Engagement (CPE)

a
ACTION Solicits a response or influences purchase behaviour in some way Website referrals Call centre enquiries Brochure requests Coupons downloaded Handraiser registrations ADVOCACY Creates word of mouth and stimulates advocacy # of bookmarks # of status updates Share This metrics

b
BENCHMARKS Comparative stats from: - similar social media platform/similar historical campaigns - other social media platforms - non social media platforms (e.g. direct mail/banner advertising) - competitor activity - non-sector specific/best in class

Social network (e.g. community forum, fan page) Cost per Impression (CPI) Cost per unique visitor

SOFT METRICS

Cost per Lead (CPL) Incremental sales Cost per incremental sale Frequency of purchase Average purchase value Reduction in call centre costs Retention rates

Cost per Referral (CPR)

FINANCIAL

blog KPIs
that other metrics may be more appropriate depending on your intent for such act

i
SOCIAL MEDIA PLATFORM AWARENESS INTENT Awareness of social media platform APPRECIATION Brand engagement and appreciation of social media platform Unique visitors SOFT METRICS Impressions Search rankings Referrals from brand website RSS subscribers Email subscribers (to blog posts) Comment subscribers Inbound links, trackbacks, pingbacks Page views Most popular posts # of comments

a
ACTION Solicits a response or influences purchase behaviour in some way Website referrals (onward clicks) Brochure requests Handraiser registrations Call centre enquiries ADVOCACY Creates word of mouth and stimulates advocacy # of tweets/retweets per post

b
BENCHMARKS Comparative stats from: - similar social media platform/similar historical Digg/Stumbleupon/Reddit campaigns - other social media Share this metrics platforms - non social media platforms No. of inbound links (e.g. direct mail/banner advertising) - competitor activity - non-sector specific/best in class Cost per Referral (CPR)

Blog

FINANCIAL

Cost per Impression (CPI) Cost per unique visitor

Cost per Engagement Cost per Lead (CPE) (CPL) Cost per subscriber Incremental sales Cost per page view Cost per incremental sale Frequency of purchase Average purchase value Retention rates

microblogging KPIs

i
AWARENESS SOCIAL MEDIA PLATFORM APPRECIATION INTENT Awareness of social media platform Brand engagement and appreciation of social media platform Impressions Search rankings Referrals from brand website # of followers # of lists # of @replies # of DMs % Visit Rate (% of followers who click on a link) Anecdotal sentiment Cost per Engagement (CPE) Cost per follower

a
ACTION ADVOCACY Solicits a response or influences purchase behaviour in some way Creates word of mouth and stimulates advocacy Website referrals Call centre enquiries Brochure requests Handraiser registrations # of retweets influence ranking

b
BENCHMARKS Comparative stats from: - similar social media platform/similar historical campaigns - other social media platforms - non social media platforms (e.g. direct mail/banner advertising) - competitor activity - non-sector specific/best in class

Microblogging Cost per Impression (CPI) FINANCIAL

SOFT

Cost per Lead (CPL) Incremental sales Cost per incremental sale Frequency of purchase Reduction in call center costs Average purchase value

Cost per Referral (CPR)

blogger outreach KPIs

i
AWARENESS SOCIAL MEDIA PLATFORM INTENT Awareness of social media platform APPRECIATION Brand engagement and appreciation of social media platform # of bloggers attending event Sentiment analysis # of comments Sentiment analysis Cost per Engagement (CPE) # of blog posts # of tweets # of responses Search rankings Cost per Impression (CPI) SOFT

a
ACTION Solicits a response or influences purchase behaviour in some way ADVOCACY Creates word of mouth and stimulates advocacy Website referrals Call centre enquiries Brochure requests Handraiser registrations Cost per Lead (CPL) Incremental sales Cost per incremental sale Frequency of purchase Average purchase value

b
BENCHMARKS Comparative stats from: Digg/Stumbleupon/Reddit - similar social media # of tweets/retweets platform/similar historical campaigns - other social media platforms - non social media platforms (e.g. Cost per Referral direct mail/banner advertising) (CPR) - competitor activity - non-sector specific/best in class

Blogger outreach FINANCIAL

app/widget KPIs
i
AWARENESS SOCIAL MEDIA PLATFORM INTENT Awareness of social media platform Search rankings Apps ranking APPRECIATION Brand engagement and appreciation of social media platform # of downloads/install Interaction rates

a
ACTION Solicits a response or influences purchase behaviour in some way Website referrals Call centre enquiries ADVOCACY Creates word of mouth and stimulates advocacy Send to a friend # of status updates Press coverage (column inches, articles, blog posts)

b
BENCHMARKS Comparative stats from: - similar social media platform/similar historical campaigns - other social media platforms - non social media platforms (e.g. direct mail/banner advertising) - competitor activity - non-sector specific/best in class

SOFT METRICS

Application/widget (eg facebook/ iphone/ desktop app)

Repeat visits Usage lifecycle # of active users Poll votes Page views Videos viewed Dwell time # of competition entries UGC uploads/submissions Cost per Impression (CPI) Cost per Engagement (CPE) Cost per install Cost per engagement

Brochure requests Handraiser registrations

Cost per Lead (CPL) Cost per lead Incremental sales Cost per incremental sale Frequency of purchase Average purchase value

FINANCIAL

Cost per Referral (CPR)

sharing KPIs

i
AWARENESS SOCIAL MEDIA PLATFORM INTENT APPRECIATION Brand engagement and appreciation of social media platform # of plays Play duration # of comments Awareness of social media platform Impressions # of blog posts/ online articles Search rankings Press coverage (column inches, articles)

a
ACTION Solicits a response or influences purchase behaviour in some way Website referrals Call centre enquiries Brochure requests ADVOCACY Creates word of mouth and stimulates advocacy # of tweets/retweets

b
BENCHMARKS Comparative stats from: - similar social media Digg/Stumbleupon/Reddit platform/similar historical # of emails campaigns - other social media platforms # of video installs/embeds - non social media platforms (e.g. direct mail/banner Memes/spin offs advertising) - competitor activity - non-sector specific/best in Cost per Referral class (CPR)

SOFT METRICS

Sharing (video/photos)

# of bookmarks UGC uploads/submissions customer rankings Cost per Engagement (CPE) Cost per play

Handraiser registrations

FINANCIAL

Cost per Impression (CPI)

Cost per Lead (CPL) Incremental sales Cost per incremental sale Frequency of purchase Average purchase value

SM advertising KPIs
i
AWARENESS SOCIAL MEDIA PLATFORM APPRECIATION INTENT Awareness of social media platform Brand engagement and appreciation of social media platform CTRs SOFT Banner interactions

a
ACTION ADVOCACY Solicits a response or influences purchase behaviour in some way Creates word of mouth and stimulates advocacy Website referrals Call centre enquiries Brochure requests Cost per Lead (CPL) Incremental sales Cost per incremental sale Frequency of purchase Average purchase value Cost per Referral (CPR)

b
BENCHMARKS Comparative stats from: - similar social media platform/similar historical campaigns - other social media platforms - non social media platforms (e.g. direct mail/banner advertising) - competitor activity - non-sector specific/best in class

FINANCIAL

Social media advertising

Cost per Impression (CPI)

Cost per Engagement (CPE)

podcasting KPIs
i
AWARENESS SOCIAL MEDIA PLATFORM APPRECIATION INTENT Awareness of social media platform Brand engagement and appreciation of social media platform

a
ACTION ADVOCACY Solicits a response or influences purchase behaviour in some way Creates word of mouth and stimulates advocacy

b
BENCHMARKS Comparative stats from: - similar social media platform/similar historical campaigns - other social media platforms - non social media platforms (e.g. direct mail/banner advertising) - competitor activity - non-sector specific/best in class

Podcasting FINANCIAL

SOFT

unique visitors impressions

# of podcast subscribers

Website referrals Brochure requests Handraiser registrations Cost per Lead (CPL) Incremental sales Cost per incremental sale Frequency of purchase Average purchase value

# of embeds Share this metrics

Cost per Impression (CPI)

Cost per Engagement (CPE)

Cost per Referral (CPR)

3. Putting theory into practice

Infiniti Europe case study

intent

intent

Establish intentions and objectives in order to define which KPIs are most pertinent

Reach out and empower key opinion formers to talk passionately about Infiniti coming to Europe, so that our prospects get to hear about us

blogger outreach & video seeding activity

4 high impact CGI 40 films were shared with key influential bloggers via SMR to introduce the range and also uploaded on numerous video sharing sites across Europe

the 4 As
This content was not designed to be particularly viral so advocacy metrics not as important as appreciation and action.
10% 20%

20%

Awareness Appreciation Action Advocacy

50%

the 4 As
awareness
# of blog posts

appreciation
# of plays # of comments Cost per engagement (CPE)

awareness appreciation action advocacy

Define and measure core KPI metrics by social media platform (soft metrics and hard financials)

Search rankings

action
CTRs Website referrals Cost per lead (CPL)

advocacy
# of emails # of embeds

awareness
# of blog posts

awareness
587 bloggers (key opinion formers) reported on the story or published content across G5 markets

awareness
Search rankings

awareness
Assets rank in top 3 search results for vehicle searches in video sharing sites

appreciation
# of plays

appreciation
HARD FINANCIALS Blogger outreach Total Plays

SOFT METRICS Video sharing sites

Territory

52% of views completely

organic (free media)

France Germany Italy Spain UK TOTAL

42,197 53,097 43,844 281,319 42,606 463,063

71,037 72,453 70,288 71,251 144,922 429,951

113,234 125,550 114,132 352,570 187,528 893,014 Only 0.11 CPE (Cost per Engagement) For every 100 invested in campaign it generated

848 plays

action
CTRs

action
HARD FINANCIALS CTR (total)

SOFT METRICS Territory CTR (%)

Blogger Outreach Blogger outreach only only

France Germany Italy Spain UK TOTAL

7.9% 9.1% 8.5% 4.4% 1.6% 5.5%

5,614 6,602 6,003 3,099 2,240 23,558

4 CPL
(Cost per Lead)

For every 100 invested in campaign it generated

24 web referrals

benchmark
action appreciation advocacy appreciation

CTR of nearly 2x industry average suggests content was very engaging and influenced behaviour Bookmarks/ downloads slightly lower than average Lower than average advocacy metrics reflect the modest viral appeal of the clips (as we expected)

Industry average

Thank you
Richard Pentin, Senior Planner, TMW rpentin@tmw.co.uk @ifonlyblog