Simple communication strategies for a complicated world.
October 13th, 2009

Social Media ROI: no different than traditional measurement

This entry is part 1 of 1 in the series smROI

Most brands in the social media space want to be able to define Social Media Return On Investment (smROI) and for good reason. They’re putting in money to the medium so they should be getting more money out of it ideally. In this respect there is NO difference between traditional and social media measurement. Here’s why:

In both mediums there are intangibles such as word of mouth and message internalization. These two factors are the strongest influencers that your customer will encounter. Generally speaking brands don’t measure the effects of these factors with the exception of the NetPromoter Score .

So why are people freaking out about measuring social media’s effectiveness? One word: money.

Let’s relate smROI back to traditional ROI in advertising. Companies advertise in magazines, newspapers, commercials and all other sorts of media outlets yet there isn’t a particular outlet that will tell them that someone bought their product or service based on advertising. Sure there’s a targeted audience there based on subscribers and media consumer demographics but unless you’re polling people at point of purchase on exactly why they bought your product then you can’t actively tie outreach to purchases. So why do companies invest money into these channels? Because there’s an audience there.

The problem with social media is that the audience isn’t built in like traditional media. You have to build up a following all on your own. Your message is competing for attention along with tons of others. That’s no different than traditional where there are many channels, magazines, newspapers and ads.

What HAS changed are the channels of communication. Instead of big media corporations dictating what the consumer consumes now the power is in the hands of the consumer. Whereas before consumers were able to choose anything within a limited confines now they have almost an unlimited pool to choose from online.

For you as a brand nothing has changed except the venue. Think of your customers as the new big media corporation. They’re deciding the programming, they’re cancelling shows, they’re greenlighting the content and syndicating your show into perpetual prosperity.

In part 2 I’ll go into the different types of measurement you can do in social media to further define smROI for your brand.


For branding and social media insights check out my Posterous.

Connect with me on Facebook, Twitter and LinkedIn.


July 12th, 2009

Paid tweet or not paid tweet, that is the question

Twitter has gained widespread recognition from media outlets, celebrities and brands among others. There are certain brands that already have a well-known presence on Twitter like @WholeFoods@JetBlue , and @Starbucks. Now because of the exposure more brands find value in this “social network” but don’t know how to go about utilizing social media tools.

Some have resorted to buying Twitter followers. Some have enlisted Twitterers to get paid for their tweets with Magpie and Adjix. The latest to throw their hat in this ring is Ted Murphy and IZEA with @Spontwts.

@Spontwts is a program where you can signup to allow advertisers to pitch you offers for you to tweet. I learned about this from a tweet from @tedmurphy which said that a celebrity made $2,500 from a single sponsored tweet.

Danny Brown wrote up an article about this. He’s “neither here nor there on the topic as long as it’s handled properly.” I tend to agree with him. Promoting something is generally neutral. How it’s done is what sets it apart.

People generally are adverse to this because of Magpie. Magpie promoted itself in an invasive manner, Any message that doesn’t take your target audience into account can run afoul of them. No one wants to see a blatantly promotional ad for a service that has nothing to do with your or their interests. That’s where Magpie went wrong. This is where Spontwts can benefit.

People want relevance. As long as the advertisers you choose align with what you already consume and subscribe to there should be no problem. I personally promote Mountain Dew on Twitter (@mtn_dew) whenever it’s naturally possible. That’s the key: NATURALLY possible.

I enjoy Mountain Dew in my life & I share my experiences with the brand on Twitter often. I can guarantee you that some of my followers do NOT share my passion for Mountain Dew, yet they accpt it /enjoy it/  engage with me on it. Why? Because I have PASSION for it. Regardless of what it is, they see that I’m genuine about it and THAT is why it works.

Spontwts is about how you use it. If a user accepts any and all offers from advertisers the service becomes a firehose. ANYTHING is a nuisance when used that way. It’s all about timing, relevancy and precision.

The brands you subscribe to and promote become part of your brand. The more value you provide through sharing & helping the more people are willing to ‘buy’ what you are ‘selling’. Tip the balance too much one way, you become an annoying shill.

Curating their users, advertisers, and tweet frequency/volume will ultimately make or break their service. Some on Twitter go for quantity, others, quality. Only a select few go for quantity of quality.

A couple of items of note:

  • Sponsored Tweets only allows you to choose one category from a select sample: Business/Finance, Entertainment, Family, Food, General, Health, Marketing, Technology, Travel.
  • You can further specify what types of offers you want to receive by tagging your profile with up to 10 keywords.
  • Notification by e-mail or DM but not both.
  • Either you or the advertiser can write the tweet (not sure if you can change their writing after the fact).
  • There is a pre-set ‘Charge per tweet’ and ‘Charge per click’ that you can change, yet no formula is given to give you scope to gauge it on.
  • A ‘Content rating’ area is also available for you to rate your tweets (Everyone, Mature, Adults-only), although if you’re like me, tweets can be all over the board.

One clarification provided by IZEA:

Sponsored Tweets will not auto inject ads into your stream. Each tweet must be approved by you before it gets released. Our goal is to provide you with quality ads that you are comfortable with.

Some final thoughts:

Sponsored Tweets add #spon onto the end as to distinguish that it’s a sponsored tweet. IZEA is also working out some technical issues like sponsored tweet DMs being truncated, thus cutting off vital information from advertisers.

Overall I believe that Ted Murphy and IZEA is onto something here. When you are allowed to preselect your content for your intended audience the ultimate onus falls on  you as the selector. This is what sets apart a quality Twitter account from a spammy one and every shade of grey in between.

sponsored tweets

As I have used Twitterfeed to inject some of the best content I have preselected from the web, so will I try out Sponsored Tweets to see if the advertisers and quality are up to my followers’ standards. I have faith in the community that I have built to tell me if it works for them or not, and I in turn will process that information and act on it.

Trust is gained over time and destroyed in a moment. Be careful with it. It is best to use a scalpel not a machete when dealing with trust concerns and your brand.


For branding and social media insights check out my Posterous.

Connect with me on Facebook, Twitter and LinkedIn.


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