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THE ROI OF SOCIAL MEDIA MARKETING: HOW
BUSINESSES SHOULD APPROACH SOCIAL MEDIA
FOR MAXIMUM IMPACT
October 2019
1
SOCIAL MEDIA GROWTH
0
10
20
30
40
50
60
70
80
90
100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Advertising Public Relations Social Media
2
SOCIAL MEDIA GROWTH
BY PLATFORM
3
3.0%
5.9%
7.1% 7.6%
6.6%
9.4%
10.6%
11.7%
9.8%
13.8%
11.9%
22.9%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
% of Marketing Budget
Allocated to Social Media
Source: August 2019 Duke University's Fuqua School of Business "The CMO Survey: August 2019"
commissioned by American Marketing Association (AMA) and Deloitte4
BIGGEST CHALLENGES
FOR SOCIAL MEDIA MARKETERS
0% 10% 20% 30% 40% 50% 60%
Measuring ROI
Understanding Cross-
Channel Success
Determining What Content
to Post
Securing Budget and
Resources
Developing a Strategy to
Support Business Goals
The Sprout Social Index, Edition XIV: Realign & Redefine
https://sproutsocial.com/insights/data/2018-index/5
80%
65%
54%
41%
21%
25%
Build Awareness Increase Engagement Increase Web Traffic Generate Sales Leads Support Customers Increase Brand
Advocacy from
Customers
SOCIAL MEDIA MARKETERS
BIGGEST GOALS
The Sprout Social Index, Edition XIV: Realign & Redefine
https://sproutsocial.com/insights/data/2018-index/6
OBJECTIVE MAPPING
ORGANIC VS. PAID SOCIAL MEDIA
ORGANIC PAID
BRAND AWARENESSINCREASE ENGAGEMENTDRIVE WEBSITE TRAFFICDRIVE SALES LEADSCUSTOMER SUPPORTBRAND ADVOCACY
7
InMail Feed Feed Pre-Roll
Cost per 1000 Impressions $20 $8.50 $7 $8
Click-thru Rate 40% .2% .75 - 2% .4%
Cost per Click $.45 $4 $.66 $2.25
Objective Drive Sales Leads
Increase
Engagement
Website Visits Brand Awareness
PAID MEDIA CHEAT SHEET
8 Source: AdStage - Q2 2019 Paid Search and Paid Social Benchmark Report
SELLING ON SOCIAL
CHALLENGES WITH A PROMOTIONAL FOCUS
Ad content
blindness
Increasing
costs 5X faster
than the pace of
inflation
Source: https://www.cmo.com/adobe-digital-insights/articles/2017/3/9/adi-summit17-advertising-report.html#gs.bf9qor
Only 34% of
people trust ads
on any channel
9
10 0 Comments 0 Shares
Employee #1
Employee #2
Employee #3
Employee #4
Tom from MySpace
THE ORGANIC STRUGGLE IS REAL
10
MAXIMIZED SOCIAL MEDIA
People Proclaiming Love for Arby’s
11
MAXIMIZED SOCIAL MEDIA
ARBY’S BRAND TURNAROUND
2010 2014 2016 2017 2018 2019
12
BRAND ADVOCACY
Drives Marketing Efficiency
• “Achieves broader reach: The average social media user
connects with more than 400 friends and family – including
people you wouldn’t typically target. A brand advocate
gives you access to new markets.”
• “Publications and news outlets prefer to feature companies
with a strong fan base. A brand advocate opens the door
to new promotional opportunities.”
• “Brand advocates give more credibility to your unique
selling points and business values, convincing customers
to convert”
• “92% of customers seek social recommendations
before buying”
Source: Sprout Social - https://sproutsocial.com/glossary/brand-advocate/
13
THE ROI OF MAXIMIZED
SOCIAL MEDIA
14
BRAND ADVOCACY
Drives Marketing Efficiency
Awareness Interest Consideration Decision
User
Experience
Advocacy
15
Awareness Interest Consideration Decision
User
Experience
Advocacy
16
Awareness Interest Consideration Decision
User
Experience
Advocacy
17
ENGAGEMENT
Employees
+ Top Fans
Engagement
Rate
AWARENESS
Friends of
Friends
Reach
Impressions
AUDIENCE
GROWTH
Niche
Exposure
New
Advocates
SALES
LEADS
New
Business
Δ on Business
Level Metrics
Day 1 Day 30 Day 90 Day 180
Measuring Impact of Brand Advocacy
18
19
CONTENT
MAXMIZATION
FRAMEWORK
20
CONTENT FRAMEWORK
Three Types of Content
Health Content
Basic content to show
audiences you’re an active
business.
On-going
Hub Content
Serial push content taps into
customer interests, to generate
brand advocacy
1 – 2 times per week
Hero Content
Big moments with the
power to create spikes in
awareness
Monthly
21
CONTENT FRAMEWORK
MONTHLY CADENCE
Value
Impact, Cost
Time
(Frequency, Planning, Production
Hero
Hub
Health
Audience
CONTENT FRAMEWORK
Examples
Health Content Hub Content Hero Content
22
0
5
10
15
20
25
30
35
40
45
50
2015 2016 2017 2018 2019
Monthly views (in millions)
0
100
200
300
400
500
600
700
2015 2016 2017 2018 2019
Followers (in thousands)
AUDIENCE GROWTH
2015 - 2019
23
BRANDS THAT INSPIRE
Favorite Examples
United Healthcare MailChimp Sofi
24
Target
Audience
Interests
What
Works on
the Platform
Brand
Value
Proposition
HUB CONTENT FORMULA
25
26
CRAFT
YOUR
MESSAGE
.76
3,100
Followers
Engagement Rate
%
1,650
161
.09%
Industry Benchmark
206
5,803
1.8
4,807
Followers
Engagement Rate
%
4%
Industry Benchmark
4.3
785
Followers
Engagement Rate
%
2,090
61
Interactions
Posts
1.53%
Industry Benchmark
Social Media Performance Example
Jan 1, 2019 – September 23, 2019
178
602
.35
12,992
Followers
Engagement Rate
%
.048%
Industry Benchmark
Benchmark source: https://www.rivaliq.com/blog/2019-social-media-benchmark-report/27
Engagement
Reach
5%
5k 125K
20%
LINKEDIN COMPETITIVE ANALYSIS
Jan 1 – September 30th, 2019
Engagement
Reach
5%
5k 125K
20%
28
29
“Stop thinking like an advertiser
and start thinking like a media
company.”
“Any company can be a
media company in 2019.”
- Gary Vaynerchuk
Followers
In a relatively short period of time, his efforts on e-commerce grew the business’ sales
from $3 million a year to more than $60 million annually.
6.7M 1.9M 3.4M
30
“Our goal is keep people on the
platform for as long as possible.”
No one wants to see ads (and they won’t, unless we get paid first).
Sporadic, low-quality content repels people.
Sending people to another website is not a priority.
- What Social Media CEOs Would Tell You If They Could
31
AFFECTION RELEVANCE TRUST
32
MESSAGING MODEL CANVAS
Personas Interests
Values
Needs
TARGET AUDIENCE
Assets
Values
Brands / Products
Purpose
YOUR COMPANY
Content Concepts
34
• “Brand as Friend” creative
takeovers
• Data-driven insight posts and
infographics
• Thought leadership reports
• Case studies
HeroHealth Content Hub
• Behind-the-scenes
• Employee Engagement
• Employee Achievements
• New Job Openings
• Recent Hires
MESSAGING MODEL CANVAS
35
Facebook
PAY
TO
PLAY
Instagram
BEST FOR
ORGANIC
GROWTH
(FOR NOW)
LinkedIn
TALENT
ENGAGMENT
B2B LEADS
YouTube
BIG COMMITMENT
CHANCE TO
MONETIZE
Twitter
REAL-TIME EVENTS
CUSTOMER
SERVICE
Tik Tok
COMING
SOON
HAS ARRIVED
Social Self-
Improvement
Visually Stimulating
Imagery
Professional Self-
Improvement Insights
Viscerally Entertaining Topical and Timely
Conversation
Personality-Driven
Short-form Video
SOCIAL MEDIA DISTRIBUTION CHEAT SHEET
36
HeroHygiene / Help Hub
CONTENT DISTRIBUTION
Stories Articles
37
38
EARLY
RESULTS
ENGAGEMENT
Engagement
Rate
AWARENESS
Reach
Impressions
AUDIENCE
GROWTH
New
Advocates
SALES
LEADS
Δ on Business
Level Metrics
Day 1 Day 30 Day 90 Day 180
Measuring Impact of Brand Advocacy
39
EARLY RESULTS - AGENCY
30 Days
Engagement Rate
18%
Reach
78%
Followers
4%
5.64 – 6.65% 28k – 50k 11,010 – 11,454
40
EARLY RESULTS - CLIENT
30 Days
Engagement Rate
69%
Reach
95%
Followers
9%
3.42 - 5.46% 102k – 198k 9,731 – 10,637
41
42
NEXT
STEPS
RECOMMENDATION
Map your
messaging to
brand advocacy
Embolden social
media teams
Install the content
maximization
framework
43
Formoreinformation,contact:
Matt Babiarz
mbabiarz@mower.com
mower.com
Let’s Talk

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