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According to Altimeter Group's latest report, most of the brands are engaged in some form of Social Media Marketing. Yet most of marketers are not sure how to budget for success. Explore some of the strategies and tactics involved with social media budgeting and planning for success and conversions.
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Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Alex Romanovich - @alexromanovichMaterial in this seminar is for reference purposes only. This seminar is sold with the understanding that neither any of the authors nor the publisher are engaged in rendering legal, accounting, investment, medical or any other professional service directly through this seminar. Neither the publisher nor the authors assume any liability for any errors or omissions, or for how this seminar or its contents are used or interpreted, or for any consequences resulting directly or indirectly from the use of this seminar. For legal, financial, medical, strategic or any other type of advice, please personally consult the appropriate professional.
Material in this seminar is for reference purposes only. This seminar is sold with the understanding that neither any of the authors nor the publisher are engaged in rendering legal, accounting, investment, medical or any other professional service directly through this seminar. Neither the publisher nor the authors assume any liability for any errors or omissions, or for how this seminar or its contents are used or interpreted, or for any consequences resulting directly or indirectly from the use of this seminar. For legal, financial, medical, strategic or any other type of advice, please personally consult the appropriate professional.
About the Webinar Speaker• Alex Romanovich, Founder – Social2B, CMO –
EuroSpaClub International, Advisory Board Member – The CMO Club
• Unique blend of technology, marketing andbusiness development skills and experience (IBM, SGI, Bertelsmann AG, Unified Technologies, Global AdvertisingStrategies, Social2B, EuroSpaClub Intl.)
• Frequent speaker and advisor on topicsof International and Multi-Cultural Mktg. (CNBC, CNN International, Forbes, Crains, Voice of America, etc.), Social Media
• Social Media Marketing, Social ValueChain, and Social Media Scalability Expertise
• @social2B, @alexromanovich, @eurospaclub
Slide 2
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Alex Romanovichwww.ExecSense.com © ExecSense, Inc.
Overview
• Social Media Networks are the most popular consumer-oriented and B2B oriented, ‘client-centric’ outlets on the Internet
• Social Network give you the opportunity to connect, engage, build a community, and convert clients and connections into ‘advocates’ for your business and brand
• Social Media Networks give companies and individuals the ability to share their knowledge with prospective customers and clients, community, making it more likely that they'll be chosen over a competitor or be deemed as a subject matter expert
Slide 3
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Alex Romanovichwww.ExecSense.com © ExecSense, Inc.
What to Know - Why Social Media is still important in 2011-2012
• 4 out 5 US businesses over 100 people will use Social Media Marketing in 2011(eMarketer, 2011)
• Social Media Marketing spending is increasing and Social Media Advertising (Ad spending on social media destinations) will cross $2B in 2011(eMarketer, 2011)
• 85% of Marketers indicated that Social Media Marketing generated exposure for their business (‘Social Media Marketing Report, 2010”)
• There are over 4,700 Social Media Jobs available in NY market area alone (Source: www.indeed.com)
Slide 4
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Alex Romanovichwww.ExecSense.com © ExecSense, Inc.
Average Annual SM Budget – 2010 (Source: Altimeter Group)
Slide 5
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Alex Romanovichwww.ExecSense.com © ExecSense, Inc.
Sales and Marketing Funnel - Traditional
Slide 6
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Alex Romanovichwww.ExecSense.com © ExecSense, Inc.
Prospect
Traditional ad &branding media
Direct & digitalmedia
lowervalue
highervalue
Prospects and Customers Customers
Loyalty
Cross Sell
Upsell
Purchase
Preference
Consideration
Interest
AwarenessTV
Radio
Newspaper
Magazines
Outdoor
Cinema
Events
Direct Mail
Search & Web
Social Media
Web 2.0
Mobile/SMS
DRTV
DR Print
CPC
Games
Sales and Marketing Funnel - New
Slide 7
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Alex Romanovichwww.ExecSense.com © ExecSense, Inc.
Awareness
Loyalty
Cross Sell
Upsell
Purchase
Preference
Consideration
Interest
Traditional ad &branding media
Direct & digitalmedia
lowervalue
highervalue
TV
Radio
Newspaper
Magazines
Outdoor
Cinema
Events
Prospects and Customers Customers
Direct Mail
Search & Web
Social Media
Web 2.0
Mobile/SMS
DRTV
DR Print
CPC
Games
Prospect
Sales and Marketing Funnel – New Integrated Funnel
Slide 8
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Alex Romanovichwww.ExecSense.com © ExecSense, Inc.
Traditional ad &branding media
Direct & digitalmedia
eRFP requesteRFP request
Select PartnerSelect Partner
Research a productResearch a product
Search brandSearch brand
Nurture leadNurture lead
Passlink Passlink
Qualify LeadQualify Lead
Email Email
$ $
$ $
View ad View ad
Interact with ad Interact with ad
Social bookmarkSocial bookmark
Write a reviewWrite a review
Rate aProduct Rate aProduct
Click email Click email
Register account Register account
Blog entry Blog entry
Register account Register account
Transact Transact
View Facebook View Facebook
M commerce M commerce
Info request Info request
Close leadClose lead
lowervalue
highervalue
TV
Radio
Newspaper
Magazines
Outdoor
Cinema
Events
Prospects and Customers Customers
Direct Mail
Search & Web
Social Media
Web 2.0
Mobile/SMS
DRTV
DR Print
CPC
Games
Prospect
Tips, Tricks, & Techniques• According to the same Altimeter Group, maturity of an organization will
define the budgets that should be allocated proportionally
• Overall budgets should increase as social business matures (annual social media budget for a Novice organization averaged $66,000, while Intermediate and Advanced averaged nearly the same at $1M to $1.3M)
• As Social Media business matures, team sizes grow but spread across functions (provided there is a buy-in at the executive level)
• To scale, organizations may have to re-organize or organize differently – centralization and standardization may have to be considered
• Scalability has to be preceded by a robust metrics and measurement development exercise, to make sure analytics and reporting is in place
Slide 9
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.
Tips, Tricks, & Techniques• Assessing your organization business maturity level can be important
• Program – experimenting or more advanced level
• Leadership or Organization Model – centralized or distributed
• Processes or Policies – mature or still developing
• Education – formal education present or still being developed
• Measurements – tied to social media success or business success
• Technology – investment present in integrated infrastructure or still maturing
Slide 10
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.
Tips, Tricks, & Techniques
Slide 11
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.
Case Studies• Case studies and statistics from Altimeter:
• All corporations will gear up their social media efforts in 2011 and 2012 (46% increase in spending, but the staff will remain small)
• Training and Education will be a priority, but still underfunded
• Corporations will invest in Ad and Marketing on social networks (75% of companies will spend Ad and Marketing dollars in 2011)
• Advanced and mature companies will spend 3X more on Boutique Agencies (in comparison to traditional agencies)
Slide 12
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.
Case Studies• Case studies and statistics from Altimeter:
• Most of the corporations will spend 56% more on brand monitoring and reporting, but ROI puzzle will still not be solved
• Community platforms will be on the rise
• Advanced corporations will invest in Custom Technology Development, including integration of social networks on the corporate websites
• Companies will invest into SMMS and SCRM (Altimeter Group)
Slide 13
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.
FAQs
•
Number 2 – I can probably do some test campaigns and see if any of them will be successful, then I can scale
•
Number 3 – It’s tough to educate everyone in the company on the benefits of social media, let alone ask for budget
•
Number 4 – We need to establish some social media metrics first and experiment – business metrics are not important
•
Number 5 – I can simply decrease my budget by hiring junior staff and interns and get the same results
•
Number 6 – Social Media may sill be immature, hence I will focus more on the traditional media
•
Number 7 – My existing agency (PR or Ad) can handle all social media efforts. Why should I get another one?
•
Number 8 – I am too busy to pay attention to Social Media and ROI hasn’t been proven – maybe next year
•
Number 9 – Investing into social media tools seems like a thing of a future – I can’t leverage it now
•
Number 10 – My CEO doesn’t understand it, hence I will not bother with it
Slide 14
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.
Moderator Questions• List three questions you would like the moderator to ask you during the
Q&A section to help spur questions from other attendees:•
Number 1 - What are the most important factors in considering a budget for social media?
•
Number 2 – Does the SM budget have to be a part of the overall marketing number?
•
Number 3 – How much budget should I allocate to external and internal resources?
Slide 15
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.
Supplemental Documents• Altimeter Group Report on Budgeting for Social Media
Slide 9
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.
Conclusions
• Point 1: Social Media spending will be more robust – time to plan is now
• Point 2: Get trained resources or start training for SM campaigns – will help with budgeting
• Point 3: ROI metrics are important and need to be established early, in unison with the financial, technology and HR organization
Slide 17
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.
Additional Documents• Please email the finished PowerPoint and any other sample
documents to [email protected] at least three business days before your scheduled webinar presentation.
• If the files are too large to send through your email server, let us know and you can use our large-file email service at www.yousendit.com.
Best Practices for Creating Your Social Media Budget- What CMOs Need to Know
Speaker Namewww.ExecSense.com © ExecSense, Inc.