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The Real Cost of Social Media

THE REAL COST OF SOCIAL MEDIA WITH SOCIAL MEDIA AT THE HEIGHT OF ITS POPULARITY, ADVERTISERS AND COMPANIES FIND IT AN EASY AND TRENDY MEANS OF EXPANDING THEIR MARKETING HORIZONS.WHILE MANY COMPANIES MAY BE FOOLED BY THE FREE COST TO OPEN A SOCIAL MEDIA ACCOUNT, MANY FAIL TO CONSIDER THE EXPENSES THAT GOES INTO RUNNING A SOCIAL MEDIA CAMPAIGN. DO THE BENEFITS REALLY OUTWEIGH THE COSTS? "HOW CAN YOU SQUANDER EVEN ONE MORE DAY NOT TAKING ADVANTAGE OF THE COST GREATEST SHIFTS OF OUR GENERATION? HOW DARE YOU SETTLE FOR LESS WHEN THE WORLD HAS MADE IT SO EASY FOR THE TRUE COST OF A SOCIAL MEDIA CAMPAIGN DEPENDS ON THE SIZE AND YOU TO BE REMARKABLE?" - SETH GODIN REACH OF THE CAMPAIGN ITSELF. FACTORS TO CONSIDER STAFF COSTS EXTERNAL FEES One cost often overlooked is the cost of your marketer's salary. Without a dedicated social media campaign manager you will need to work out the amount of time your other employees will spend on the campaign or maintaining the social media site. Community managers are also needed to answer customer inquiries and to maintain a 'spam-free' zone for your clients and customers. If your campaign is not in-house, do you outsource all parts of your social media campaign? If that is the case then you will need to figure out the breakdown in billing and how you will be charged. Since different agencies have different rates for different strategies, you'll need to work out if this is a continuous cost and whether it affects your return value. ADVERTISING OTHER The biggest myth about social media is: 'if you build it, they will come.' Merely setting up a Facebook page or a Twitter account will not guarantee any ROI. It is necessary to add your own advertising to the mix. This can include targeted adds on Facebook, adding follow buttons on your company's website, or email advertisements. While many basic tools for social media are free, more in-depth tools, such as tracking, require some escalated cost. Any other technical and creative costs may have to also be assumed. What if your social media is highly successful? Do you have the necessary cash flow to allow it to expand? ESTIMATED COST Below is a breakdown of what a full-out social media campaign may cost in a year. The amounts are estimates released by Danny Brown, CEO of Bonsai İnteractive, a social media and mobile marketing firm. TOTAL COST: $52,000 $15,000. $20,000 MICRO-BUILD SITE MOBILE APP SOCIAL MEDIA STRATEGIST If there is no existing platform At $100 per hour and 10 hours a week. $93,600 $30,000 MICRO-BUILD SITE If there is no existing platform COMMUNITY MANAGER At $60 per hour and 30 hours per week. BENEFITS CONSIDERING THE POTENTIAL COST OF A TARGET SOCIAL MEDIA CAMPAIGN, ARE THE BENEFITS REALLY WORTH THE EFFORT AND MONEY? MAIN BENEFITS OF SOCIAL MEDIA In a survey, eMarketers asked U.S. Marketing Executives what they felt were the main benefits of marketing through social media. Not surprisingly, only half of the respondents felt that 'low cost' was a benefit. Below are the results by percentage of respondents. Customer Engagement 85.4% Direct Customer Communications 65% Speed of Feedback 59.9% Learning Customer Preferences 59.1% Low Cost 51.1% Brand Building 48.2% Market Research 42.3% Credibility of the “crowd" 40.1% Reach |37.2% Great Lead Generation 21.2% Customer Service 17.5% FACEBOOK FACEBOOK FANS In a recent survey conducted by Syncapse, 20 brands were evaluated to see the economic potential of having fans on Facebook. Below are some of the results for the most recognized brands. Avg. amount spent by a Facebook Fan Avg. amount spent by a non-Facebook Fan McDonald's Coca-Cola 1$190.48 $120.98 $310.18 | $150.39 Starbucks Nike $235.22 $205.02 $110.95 $83.69 Xbox Victoria's Secret $173.34 $139.46 $229.04 $152.97 Playstation Motorola S60.83 $188.02 $160.01 $69.09 Nutella Nokia $11395 $50.14 | $171.22 $63.86 FACEBOOK FANS On average, fans spent an additional $71.84 on products for which they are fans of, compared to those that are not 'fans' on Facebook. Fans are 28% more likely than non-fans to continue using the brand. Fans are 41% more likely than non-fans to recommend a fanned product to their friends. 28% 41% TWITTER VALUE OF A TWITTER FOLLOWER Below is an estimated worth of a Twitter account with 33,000 followers. Monthly Investment Monthly Value of Follower $2,382 $2.38 Monthly Return Monthly Cost per Follower $1,667 |$1.67 ROI: 43% CASE STUDY @DELLOUTLET In the case of @DellOutlet, they sought to expand their brand awareness heavily through Twitter. These are the ROI results they generated soon after their Twitter page was launched. $3 $1 MILLION MILLION From Twitter followers in a 6-month span. From Twitter followers who clicked through its posts to the website to make purchases. CASE STUDY @OLDSPICE Sometimes the benefit of social media is its ability to create a central forum for new consumers. In the case of the Old Spice brand, a new commercial was launched which generated a lot of media attention. The Twitter and Facebook page became a rallying point for these new adoptees. 2700% INCREASE 800% INCREASE 300% INCREASE There was a 2700% increase in There was a 800% increase There was a 300% increase Twitter followers. in Facebook followers. in traffic to the brand site. SOURCES: DANNYBROWN.ME I SYNCAPSE.COM I SOCIALMEDIATODAY.COM I 02P.ORG I ECONSULTANCY.COM I INNERARCHITECT.COM I KLURIGANAYTICS.COM I EMARKETER.COM THE REAL COST OF SOCIAL MEDIA WITH SOCIAL MEDIA AT THE HEIGHT OF ITS POPULARITY, ADVERTISERS AND COMPANIES FIND IT AN EASY AND TRENDY MEANS OF EXPANDING THEIR MARKETING HORIZONS.WHILE MANY COMPANIES MAY BE FOOLED BY THE FREE COST TO OPEN A SOCIAL MEDIA ACCOUNT, MANY FAIL TO CONSIDER THE EXPENSES THAT GOES INTO RUNNING A SOCIAL MEDIA CAMPAIGN. DO THE BENEFITS REALLY OUTWEIGH THE COSTS? "HOW CAN YOU SQUANDER EVEN ONE MORE DAY NOT TAKING ADVANTAGE OF THE COST GREATEST SHIFTS OF OUR GENERATION? HOW DARE YOU SETTLE FOR LESS WHEN THE WORLD HAS MADE IT SO EASY FOR THE TRUE COST OF A SOCIAL MEDIA CAMPAIGN DEPENDS ON THE SIZE AND YOU TO BE REMARKABLE?" - SETH GODIN REACH OF THE CAMPAIGN ITSELF. FACTORS TO CONSIDER STAFF COSTS EXTERNAL FEES One cost often overlooked is the cost of your marketer's salary. Without a dedicated social media campaign manager you will need to work out the amount of time your other employees will spend on the campaign or maintaining the social media site. Community managers are also needed to answer customer inquiries and to maintain a 'spam-free' zone for your clients and customers. If your campaign is not in-house, do you outsource all parts of your social media campaign? If that is the case then you will need to figure out the breakdown in billing and how you will be charged. Since different agencies have different rates for different strategies, you'll need to work out if this is a continuous cost and whether it affects your return value. ADVERTISING OTHER The biggest myth about social media is: 'if you build it, they will come.' Merely setting up a Facebook page or a Twitter account will not guarantee any ROI. It is necessary to add your own advertising to the mix. This can include targeted adds on Facebook, adding follow buttons on your company's website, or email advertisements. While many basic tools for social media are free, more in-depth tools, such as tracking, require some escalated cost. Any other technical and creative costs may have to also be assumed. What if your social media is highly successful? Do you have the necessary cash flow to allow it to expand? ESTIMATED COST Below is a breakdown of what a full-out social media campaign may cost in a year. The amounts are estimates released by Danny Brown, CEO of Bonsai İnteractive, a social media and mobile marketing firm. TOTAL COST: $52,000 $15,000. $20,000 MICRO-BUILD SITE MOBILE APP SOCIAL MEDIA STRATEGIST If there is no existing platform At $100 per hour and 10 hours a week. $93,600 $30,000 MICRO-BUILD SITE If there is no existing platform COMMUNITY MANAGER At $60 per hour and 30 hours per week. BENEFITS CONSIDERING THE POTENTIAL COST OF A TARGET SOCIAL MEDIA CAMPAIGN, ARE THE BENEFITS REALLY WORTH THE EFFORT AND MONEY? MAIN BENEFITS OF SOCIAL MEDIA In a survey, eMarketers asked U.S. Marketing Executives what they felt were the main benefits of marketing through social media. Not surprisingly, only half of the respondents felt that 'low cost' was a benefit. Below are the results by percentage of respondents. Customer Engagement 85.4% Direct Customer Communications 65% Speed of Feedback 59.9% Learning Customer Preferences 59.1% Low Cost 51.1% Brand Building 48.2% Market Research 42.3% Credibility of the “crowd" 40.1% Reach |37.2% Great Lead Generation 21.2% Customer Service 17.5% FACEBOOK FACEBOOK FANS In a recent survey conducted by Syncapse, 20 brands were evaluated to see the economic potential of having fans on Facebook. Below are some of the results for the most recognized brands. Avg. amount spent by a Facebook Fan Avg. amount spent by a non-Facebook Fan McDonald's Coca-Cola 1$190.48 $120.98 $310.18 | $150.39 Starbucks Nike $235.22 $205.02 $110.95 $83.69 Xbox Victoria's Secret $173.34 $139.46 $229.04 $152.97 Playstation Motorola S60.83 $188.02 $160.01 $69.09 Nutella Nokia $11395 $50.14 | $171.22 $63.86 FACEBOOK FANS On average, fans spent an additional $71.84 on products for which they are fans of, compared to those that are not 'fans' on Facebook. Fans are 28% more likely than non-fans to continue using the brand. Fans are 41% more likely than non-fans to recommend a fanned product to their friends. 28% 41% TWITTER VALUE OF A TWITTER FOLLOWER Below is an estimated worth of a Twitter account with 33,000 followers. Monthly Investment Monthly Value of Follower $2,382 $2.38 Monthly Return Monthly Cost per Follower $1,667 |$1.67 ROI: 43% CASE STUDY @DELLOUTLET In the case of @DellOutlet, they sought to expand their brand awareness heavily through Twitter. These are the ROI results they generated soon after their Twitter page was launched. $3 $1 MILLION MILLION From Twitter followers in a 6-month span. From Twitter followers who clicked through its posts to the website to make purchases. CASE STUDY @OLDSPICE Sometimes the benefit of social media is its ability to create a central forum for new consumers. In the case of the Old Spice brand, a new commercial was launched which generated a lot of media attention. The Twitter and Facebook page became a rallying point for these new adoptees. 2700% INCREASE 800% INCREASE 300% INCREASE There was a 2700% increase in There was a 800% increase There was a 300% increase Twitter followers. in Facebook followers. in traffic to the brand site. SOURCES: DANNYBROWN.ME I SYNCAPSE.COM I SOCIALMEDIATODAY.COM I 02P.ORG I ECONSULTANCY.COM I INNERARCHITECT.COM I KLURIGANAYTICS.COM I EMARKETER.COM THE REAL COST OF SOCIAL MEDIA WITH SOCIAL MEDIA AT THE HEIGHT OF ITS POPULARITY, ADVERTISERS AND COMPANIES FIND IT AN EASY AND TRENDY MEANS OF EXPANDING THEIR MARKETING HORIZONS.WHILE MANY COMPANIES MAY BE FOOLED BY THE FREE COST TO OPEN A SOCIAL MEDIA ACCOUNT, MANY FAIL TO CONSIDER THE EXPENSES THAT GOES INTO RUNNING A SOCIAL MEDIA CAMPAIGN. DO THE BENEFITS REALLY OUTWEIGH THE COSTS? "HOW CAN YOU SQUANDER EVEN ONE MORE DAY NOT TAKING ADVANTAGE OF THE COST GREATEST SHIFTS OF OUR GENERATION? HOW DARE YOU SETTLE FOR LESS WHEN THE WORLD HAS MADE IT SO EASY FOR THE TRUE COST OF A SOCIAL MEDIA CAMPAIGN DEPENDS ON THE SIZE AND YOU TO BE REMARKABLE?" - SETH GODIN REACH OF THE CAMPAIGN ITSELF. FACTORS TO CONSIDER STAFF COSTS EXTERNAL FEES One cost often overlooked is the cost of your marketer's salary. Without a dedicated social media campaign manager you will need to work out the amount of time your other employees will spend on the campaign or maintaining the social media site. Community managers are also needed to answer customer inquiries and to maintain a 'spam-free' zone for your clients and customers. If your campaign is not in-house, do you outsource all parts of your social media campaign? If that is the case then you will need to figure out the breakdown in billing and how you will be charged. Since different agencies have different rates for different strategies, you'll need to work out if this is a continuous cost and whether it affects your return value. ADVERTISING OTHER The biggest myth about social media is: 'if you build it, they will come.' Merely setting up a Facebook page or a Twitter account will not guarantee any ROI. It is necessary to add your own advertising to the mix. This can include targeted adds on Facebook, adding follow buttons on your company's website, or email advertisements. While many basic tools for social media are free, more in-depth tools, such as tracking, require some escalated cost. Any other technical and creative costs may have to also be assumed. What if your social media is highly successful? Do you have the necessary cash flow to allow it to expand? ESTIMATED COST Below is a breakdown of what a full-out social media campaign may cost in a year. The amounts are estimates released by Danny Brown, CEO of Bonsai İnteractive, a social media and mobile marketing firm. TOTAL COST: $52,000 $15,000. $20,000 MICRO-BUILD SITE MOBILE APP SOCIAL MEDIA STRATEGIST If there is no existing platform At $100 per hour and 10 hours a week. $93,600 $30,000 MICRO-BUILD SITE If there is no existing platform COMMUNITY MANAGER At $60 per hour and 30 hours per week. BENEFITS CONSIDERING THE POTENTIAL COST OF A TARGET SOCIAL MEDIA CAMPAIGN, ARE THE BENEFITS REALLY WORTH THE EFFORT AND MONEY? MAIN BENEFITS OF SOCIAL MEDIA In a survey, eMarketers asked U.S. Marketing Executives what they felt were the main benefits of marketing through social media. Not surprisingly, only half of the respondents felt that 'low cost' was a benefit. Below are the results by percentage of respondents. Customer Engagement 85.4% Direct Customer Communications 65% Speed of Feedback 59.9% Learning Customer Preferences 59.1% Low Cost 51.1% Brand Building 48.2% Market Research 42.3% Credibility of the “crowd" 40.1% Reach |37.2% Great Lead Generation 21.2% Customer Service 17.5% FACEBOOK FACEBOOK FANS In a recent survey conducted by Syncapse, 20 brands were evaluated to see the economic potential of having fans on Facebook. Below are some of the results for the most recognized brands. Avg. amount spent by a Facebook Fan Avg. amount spent by a non-Facebook Fan McDonald's Coca-Cola 1$190.48 $120.98 $310.18 | $150.39 Starbucks Nike $235.22 $205.02 $110.95 $83.69 Xbox Victoria's Secret $173.34 $139.46 $229.04 $152.97 Playstation Motorola S60.83 $188.02 $160.01 $69.09 Nutella Nokia $11395 $50.14 | $171.22 $63.86 FACEBOOK FANS On average, fans spent an additional $71.84 on products for which they are fans of, compared to those that are not 'fans' on Facebook. Fans are 28% more likely than non-fans to continue using the brand. Fans are 41% more likely than non-fans to recommend a fanned product to their friends. 28% 41% TWITTER VALUE OF A TWITTER FOLLOWER Below is an estimated worth of a Twitter account with 33,000 followers. Monthly Investment Monthly Value of Follower $2,382 $2.38 Monthly Return Monthly Cost per Follower $1,667 |$1.67 ROI: 43% CASE STUDY @DELLOUTLET In the case of @DellOutlet, they sought to expand their brand awareness heavily through Twitter. These are the ROI results they generated soon after their Twitter page was launched. $3 $1 MILLION MILLION From Twitter followers in a 6-month span. From Twitter followers who clicked through its posts to the website to make purchases. CASE STUDY @OLDSPICE Sometimes the benefit of social media is its ability to create a central forum for new consumers. In the case of the Old Spice brand, a new commercial was launched which generated a lot of media attention. The Twitter and Facebook page became a rallying point for these new adoptees. 2700% INCREASE 800% INCREASE 300% INCREASE There was a 2700% increase in There was a 800% increase There was a 300% increase Twitter followers. in Facebook followers. in traffic to the brand site. SOURCES: DANNYBROWN.ME I SYNCAPSE.COM I SOCIALMEDIATODAY.COM I 02P.ORG I ECONSULTANCY.COM I INNERARCHITECT.COM I KLURIGANAYTICS.COM I EMARKETER.COM THE REAL COST OF SOCIAL MEDIA WITH SOCIAL MEDIA AT THE HEIGHT OF ITS POPULARITY, ADVERTISERS AND COMPANIES FIND IT AN EASY AND TRENDY MEANS OF EXPANDING THEIR MARKETING HORIZONS.WHILE MANY COMPANIES MAY BE FOOLED BY THE FREE COST TO OPEN A SOCIAL MEDIA ACCOUNT, MANY FAIL TO CONSIDER THE EXPENSES THAT GOES INTO RUNNING A SOCIAL MEDIA CAMPAIGN. DO THE BENEFITS REALLY OUTWEIGH THE COSTS? "HOW CAN YOU SQUANDER EVEN ONE MORE DAY NOT TAKING ADVANTAGE OF THE COST GREATEST SHIFTS OF OUR GENERATION? HOW DARE YOU SETTLE FOR LESS WHEN THE WORLD HAS MADE IT SO EASY FOR THE TRUE COST OF A SOCIAL MEDIA CAMPAIGN DEPENDS ON THE SIZE AND YOU TO BE REMARKABLE?" - SETH GODIN REACH OF THE CAMPAIGN ITSELF. FACTORS TO CONSIDER STAFF COSTS EXTERNAL FEES One cost often overlooked is the cost of your marketer's salary. Without a dedicated social media campaign manager you will need to work out the amount of time your other employees will spend on the campaign or maintaining the social media site. Community managers are also needed to answer customer inquiries and to maintain a 'spam-free' zone for your clients and customers. If your campaign is not in-house, do you outsource all parts of your social media campaign? If that is the case then you will need to figure out the breakdown in billing and how you will be charged. Since different agencies have different rates for different strategies, you'll need to work out if this is a continuous cost and whether it affects your return value. ADVERTISING OTHER The biggest myth about social media is: 'if you build it, they will come.' Merely setting up a Facebook page or a Twitter account will not guarantee any ROI. It is necessary to add your own advertising to the mix. This can include targeted adds on Facebook, adding follow buttons on your company's website, or email advertisements. While many basic tools for social media are free, more in-depth tools, such as tracking, require some escalated cost. Any other technical and creative costs may have to also be assumed. What if your social media is highly successful? Do you have the necessary cash flow to allow it to expand? ESTIMATED COST Below is a breakdown of what a full-out social media campaign may cost in a year. The amounts are estimates released by Danny Brown, CEO of Bonsai İnteractive, a social media and mobile marketing firm. TOTAL COST: $52,000 $15,000. $20,000 MICRO-BUILD SITE MOBILE APP SOCIAL MEDIA STRATEGIST If there is no existing platform At $100 per hour and 10 hours a week. $93,600 $30,000 MICRO-BUILD SITE If there is no existing platform COMMUNITY MANAGER At $60 per hour and 30 hours per week. BENEFITS CONSIDERING THE POTENTIAL COST OF A TARGET SOCIAL MEDIA CAMPAIGN, ARE THE BENEFITS REALLY WORTH THE EFFORT AND MONEY? MAIN BENEFITS OF SOCIAL MEDIA In a survey, eMarketers asked U.S. Marketing Executives what they felt were the main benefits of marketing through social media. Not surprisingly, only half of the respondents felt that 'low cost' was a benefit. Below are the results by percentage of respondents. Customer Engagement 85.4% Direct Customer Communications 65% Speed of Feedback 59.9% Learning Customer Preferences 59.1% Low Cost 51.1% Brand Building 48.2% Market Research 42.3% Credibility of the “crowd" 40.1% Reach |37.2% Great Lead Generation 21.2% Customer Service 17.5% FACEBOOK FACEBOOK FANS In a recent survey conducted by Syncapse, 20 brands were evaluated to see the economic potential of having fans on Facebook. Below are some of the results for the most recognized brands. Avg. amount spent by a Facebook Fan Avg. amount spent by a non-Facebook Fan McDonald's Coca-Cola 1$190.48 $120.98 $310.18 | $150.39 Starbucks Nike $235.22 $205.02 $110.95 $83.69 Xbox Victoria's Secret $173.34 $139.46 $229.04 $152.97 Playstation Motorola S60.83 $188.02 $160.01 $69.09 Nutella Nokia $11395 $50.14 | $171.22 $63.86 FACEBOOK FANS On average, fans spent an additional $71.84 on products for which they are fans of, compared to those that are not 'fans' on Facebook. Fans are 28% more likely than non-fans to continue using the brand. Fans are 41% more likely than non-fans to recommend a fanned product to their friends. 28% 41% TWITTER VALUE OF A TWITTER FOLLOWER Below is an estimated worth of a Twitter account with 33,000 followers. Monthly Investment Monthly Value of Follower $2,382 $2.38 Monthly Return Monthly Cost per Follower $1,667 |$1.67 ROI: 43% CASE STUDY @DELLOUTLET In the case of @DellOutlet, they sought to expand their brand awareness heavily through Twitter. These are the ROI results they generated soon after their Twitter page was launched. $3 $1 MILLION MILLION From Twitter followers in a 6-month span. From Twitter followers who clicked through its posts to the website to make purchases. CASE STUDY @OLDSPICE Sometimes the benefit of social media is its ability to create a central forum for new consumers. In the case of the Old Spice brand, a new commercial was launched which generated a lot of media attention. The Twitter and Facebook page became a rallying point for these new adoptees. 2700% INCREASE 800% INCREASE 300% INCREASE There was a 2700% increase in There was a 800% increase There was a 300% increase Twitter followers. in Facebook followers. in traffic to the brand site. SOURCES: DANNYBROWN.ME I SYNCAPSE.COM I SOCIALMEDIATODAY.COM I 02P.ORG I ECONSULTANCY.COM I INNERARCHITECT.COM I KLURIGANAYTICS.COM I EMARKETER.COM THE REAL COST OF SOCIAL MEDIA WITH SOCIAL MEDIA AT THE HEIGHT OF ITS POPULARITY, ADVERTISERS AND COMPANIES FIND IT AN EASY AND TRENDY MEANS OF EXPANDING THEIR MARKETING HORIZONS.WHILE MANY COMPANIES MAY BE FOOLED BY THE FREE COST TO OPEN A SOCIAL MEDIA ACCOUNT, MANY FAIL TO CONSIDER THE EXPENSES THAT GOES INTO RUNNING A SOCIAL MEDIA CAMPAIGN. DO THE BENEFITS REALLY OUTWEIGH THE COSTS? "HOW CAN YOU SQUANDER EVEN ONE MORE DAY NOT TAKING ADVANTAGE OF THE COST GREATEST SHIFTS OF OUR GENERATION? HOW DARE YOU SETTLE FOR LESS WHEN THE WORLD HAS MADE IT SO EASY FOR THE TRUE COST OF A SOCIAL MEDIA CAMPAIGN DEPENDS ON THE SIZE AND YOU TO BE REMARKABLE?" - SETH GODIN REACH OF THE CAMPAIGN ITSELF. FACTORS TO CONSIDER STAFF COSTS EXTERNAL FEES One cost often overlooked is the cost of your marketer's salary. Without a dedicated social media campaign manager you will need to work out the amount of time your other employees will spend on the campaign or maintaining the social media site. Community managers are also needed to answer customer inquiries and to maintain a 'spam-free' zone for your clients and customers. If your campaign is not in-house, do you outsource all parts of your social media campaign? If that is the case then you will need to figure out the breakdown in billing and how you will be charged. Since different agencies have different rates for different strategies, you'll need to work out if this is a continuous cost and whether it affects your return value. ADVERTISING OTHER The biggest myth about social media is: 'if you build it, they will come.' Merely setting up a Facebook page or a Twitter account will not guarantee any ROI. It is necessary to add your own advertising to the mix. This can include targeted adds on Facebook, adding follow buttons on your company's website, or email advertisements. While many basic tools for social media are free, more in-depth tools, such as tracking, require some escalated cost. Any other technical and creative costs may have to also be assumed. What if your social media is highly successful? Do you have the necessary cash flow to allow it to expand? ESTIMATED COST Below is a breakdown of what a full-out social media campaign may cost in a year. The amounts are estimates released by Danny Brown, CEO of Bonsai İnteractive, a social media and mobile marketing firm. TOTAL COST: $52,000 $15,000. $20,000 MICRO-BUILD SITE MOBILE APP SOCIAL MEDIA STRATEGIST If there is no existing platform At $100 per hour and 10 hours a week. $93,600 $30,000 MICRO-BUILD SITE If there is no existing platform COMMUNITY MANAGER At $60 per hour and 30 hours per week. BENEFITS CONSIDERING THE POTENTIAL COST OF A TARGET SOCIAL MEDIA CAMPAIGN, ARE THE BENEFITS REALLY WORTH THE EFFORT AND MONEY? MAIN BENEFITS OF SOCIAL MEDIA In a survey, eMarketers asked U.S. Marketing Executives what they felt were the main benefits of marketing through social media. Not surprisingly, only half of the respondents felt that 'low cost' was a benefit. Below are the results by percentage of respondents. Customer Engagement 85.4% Direct Customer Communications 65% Speed of Feedback 59.9% Learning Customer Preferences 59.1% Low Cost 51.1% Brand Building 48.2% Market Research 42.3% Credibility of the “crowd" 40.1% Reach |37.2% Great Lead Generation 21.2% Customer Service 17.5% FACEBOOK FACEBOOK FANS In a recent survey conducted by Syncapse, 20 brands were evaluated to see the economic potential of having fans on Facebook. Below are some of the results for the most recognized brands. Avg. amount spent by a Facebook Fan Avg. amount spent by a non-Facebook Fan McDonald's Coca-Cola 1$190.48 $120.98 $310.18 | $150.39 Starbucks Nike $235.22 $205.02 $110.95 $83.69 Xbox Victoria's Secret $173.34 $139.46 $229.04 $152.97 Playstation Motorola S60.83 $188.02 $160.01 $69.09 Nutella Nokia $11395 $50.14 | $171.22 $63.86 FACEBOOK FANS On average, fans spent an additional $71.84 on products for which they are fans of, compared to those that are not 'fans' on Facebook. Fans are 28% more likely than non-fans to continue using the brand. Fans are 41% more likely than non-fans to recommend a fanned product to their friends. 28% 41% TWITTER VALUE OF A TWITTER FOLLOWER Below is an estimated worth of a Twitter account with 33,000 followers. Monthly Investment Monthly Value of Follower $2,382 $2.38 Monthly Return Monthly Cost per Follower $1,667 |$1.67 ROI: 43% CASE STUDY @DELLOUTLET In the case of @DellOutlet, they sought to expand their brand awareness heavily through Twitter. These are the ROI results they generated soon after their Twitter page was launched. $3 $1 MILLION MILLION From Twitter followers in a 6-month span. From Twitter followers who clicked through its posts to the website to make purchases. CASE STUDY @OLDSPICE Sometimes the benefit of social media is its ability to create a central forum for new consumers. In the case of the Old Spice brand, a new commercial was launched which generated a lot of media attention. The Twitter and Facebook page became a rallying point for these new adoptees. 2700% INCREASE 800% INCREASE 300% INCREASE There was a 2700% increase in There was a 800% increase There was a 300% increase Twitter followers. in Facebook followers. in traffic to the brand site. SOURCES: DANNYBROWN.ME I SYNCAPSE.COM I SOCIALMEDIATODAY.COM I 02P.ORG I ECONSULTANCY.COM I INNERARCHITECT.COM I KLURIGANAYTICS.COM I EMARKETER.COM THE REAL COST OF SOCIAL MEDIA WITH SOCIAL MEDIA AT THE HEIGHT OF ITS POPULARITY, ADVERTISERS AND COMPANIES FIND IT AN EASY AND TRENDY MEANS OF EXPANDING THEIR MARKETING HORIZONS.WHILE MANY COMPANIES MAY BE FOOLED BY THE FREE COST TO OPEN A SOCIAL MEDIA ACCOUNT, MANY FAIL TO CONSIDER THE EXPENSES THAT GOES INTO RUNNING A SOCIAL MEDIA CAMPAIGN. DO THE BENEFITS REALLY OUTWEIGH THE COSTS? "HOW CAN YOU SQUANDER EVEN ONE MORE DAY NOT TAKING ADVANTAGE OF THE COST GREATEST SHIFTS OF OUR GENERATION? HOW DARE YOU SETTLE FOR LESS WHEN THE WORLD HAS MADE IT SO EASY FOR THE TRUE COST OF A SOCIAL MEDIA CAMPAIGN DEPENDS ON THE SIZE AND YOU TO BE REMARKABLE?" - SETH GODIN REACH OF THE CAMPAIGN ITSELF. FACTORS TO CONSIDER STAFF COSTS EXTERNAL FEES One cost often overlooked is the cost of your marketer's salary. Without a dedicated social media campaign manager you will need to work out the amount of time your other employees will spend on the campaign or maintaining the social media site. Community managers are also needed to answer customer inquiries and to maintain a 'spam-free' zone for your clients and customers. If your campaign is not in-house, do you outsource all parts of your social media campaign? If that is the case then you will need to figure out the breakdown in billing and how you will be charged. Since different agencies have different rates for different strategies, you'll need to work out if this is a continuous cost and whether it affects your return value. ADVERTISING OTHER The biggest myth about social media is: 'if you build it, they will come.' Merely setting up a Facebook page or a Twitter account will not guarantee any ROI. It is necessary to add your own advertising to the mix. This can include targeted adds on Facebook, adding follow buttons on your company's website, or email advertisements. While many basic tools for social media are free, more in-depth tools, such as tracking, require some escalated cost. Any other technical and creative costs may have to also be assumed. What if your social media is highly successful? Do you have the necessary cash flow to allow it to expand? ESTIMATED COST Below is a breakdown of what a full-out social media campaign may cost in a year. The amounts are estimates released by Danny Brown, CEO of Bonsai İnteractive, a social media and mobile marketing firm. TOTAL COST: $52,000 $15,000. $20,000 MICRO-BUILD SITE MOBILE APP SOCIAL MEDIA STRATEGIST If there is no existing platform At $100 per hour and 10 hours a week. $93,600 $30,000 MICRO-BUILD SITE If there is no existing platform COMMUNITY MANAGER At $60 per hour and 30 hours per week. BENEFITS CONSIDERING THE POTENTIAL COST OF A TARGET SOCIAL MEDIA CAMPAIGN, ARE THE BENEFITS REALLY WORTH THE EFFORT AND MONEY? MAIN BENEFITS OF SOCIAL MEDIA In a survey, eMarketers asked U.S. Marketing Executives what they felt were the main benefits of marketing through social media. Not surprisingly, only half of the respondents felt that 'low cost' was a benefit. Below are the results by percentage of respondents. Customer Engagement 85.4% Direct Customer Communications 65% Speed of Feedback 59.9% Learning Customer Preferences 59.1% Low Cost 51.1% Brand Building 48.2% Market Research 42.3% Credibility of the “crowd" 40.1% Reach |37.2% Great Lead Generation 21.2% Customer Service 17.5% FACEBOOK FACEBOOK FANS In a recent survey conducted by Syncapse, 20 brands were evaluated to see the economic potential of having fans on Facebook. Below are some of the results for the most recognized brands. Avg. amount spent by a Facebook Fan Avg. amount spent by a non-Facebook Fan McDonald's Coca-Cola 1$190.48 $120.98 $310.18 | $150.39 Starbucks Nike $235.22 $205.02 $110.95 $83.69 Xbox Victoria's Secret $173.34 $139.46 $229.04 $152.97 Playstation Motorola S60.83 $188.02 $160.01 $69.09 Nutella Nokia $11395 $50.14 | $171.22 $63.86 FACEBOOK FANS On average, fans spent an additional $71.84 on products for which they are fans of, compared to those that are not 'fans' on Facebook. Fans are 28% more likely than non-fans to continue using the brand. Fans are 41% more likely than non-fans to recommend a fanned product to their friends. 28% 41% TWITTER VALUE OF A TWITTER FOLLOWER Below is an estimated worth of a Twitter account with 33,000 followers. Monthly Investment Monthly Value of Follower $2,382 $2.38 Monthly Return Monthly Cost per Follower $1,667 |$1.67 ROI: 43% CASE STUDY @DELLOUTLET In the case of @DellOutlet, they sought to expand their brand awareness heavily through Twitter. These are the ROI results they generated soon after their Twitter page was launched. $3 $1 MILLION MILLION From Twitter followers in a 6-month span. From Twitter followers who clicked through its posts to the website to make purchases. CASE STUDY @OLDSPICE Sometimes the benefit of social media is its ability to create a central forum for new consumers. In the case of the Old Spice brand, a new commercial was launched which generated a lot of media attention. The Twitter and Facebook page became a rallying point for these new adoptees. 2700% INCREASE 800% INCREASE 300% INCREASE There was a 2700% increase in There was a 800% increase There was a 300% increase Twitter followers. in Facebook followers. in traffic to the brand site. SOURCES: DANNYBROWN.ME I SYNCAPSE.COM I SOCIALMEDIATODAY.COM I 02P.ORG I ECONSULTANCY.COM I INNERARCHITECT.COM I KLURIGANAYTICS.COM I EMARKETER.COM

The Real Cost of Social Media

shared by kcatoto on Dec 28
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Here you go, a very insightful infographic shedding light on the value of social media for firms. This is based on research conducted by Syncapse, including a comparison of 20 brands to assess the ec...

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