Forget ROI
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The document discusses the role of social media as a cultural and time investment rather than a direct profit-generating campaign. It argues against using traditional ROI metrics for evaluating social media, suggesting metrics like Return on Assets (ROA) as more applicable. Ultimately, it highlights how social media can enhance brand value, customer engagement, and perceived worth, despite not immediately translating to revenue.
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Forget ROI
- 1. Forget ROI A Theory on Social Media and How To Swing It Justin Whitaker Shogun, MicroNiche Consulting
- 2. Social media is online content created by people using highly accessible and scalable publishing technologies.
- 3. Social media is a shift in how people discover, read and share news, information and content. -Wikipedia
- 4. The goal in getting involved In Social Media is to get people generating content and sharing information about you & your products !
- 5. How do you prove expending resources on Social Media is worth it?
- 6. How do you swing it?
- 8. Return on Investment ?
- 9. Return on Assets ?
- 10. Wait, Return on Assets ?
- 11. Engagement Measures ! = $
- 12. ROI = ( Gain on Investment – Cost of Investment)/Cost of Investment
- 13. ROI = How efficiently capital is used
- 14. ROI= Assumes discrete project/ milestone
- 15. ROI= Assumes attributable revenue
- 16. Social Media is not a campaign
- 17. Social Media may not generate attributable revenue.
- 18. (Engagement-Costs)/Costs != ROI
- 19. (At least not to corporate decision makers .)
- 20. ROI is the wrong tool.
- 21. ROA = Net Income / Total Assets
- 22. ROA = Efficiency of Asset Usage
- 23. But, isn’t Social Media an investment ?
- 24. Social Media is a time investment.
- 25. Social Media is a cultural investment.
- 26. Social Media is an expense .
- 27. Social Media = - Net Income
- 28. Social Media = + Brand Value (Recognition/$)
- 29. Social Media can influence the perception and value of your brand.
- 30. Social Media = + Customer List (Community Engagement)
- 31. Social Media allows me to efficiently increase # of engaged customers.
- 32. More engaged = more value .
- 33. Via Social Media you can generate measurable deltas in two key intangible assets .
- 34. Intangible assets are balance sheet items.
- 35. (In Case You Were Wondering .)
- 36. Business 101: + Net Income /Total Assets
- 37. + Differentiation = + Net Income
- 38. + Engaged customers = + Net Income
- 39. Business 102: + Net Income/ + Total Assets
- 40. + Differentiation = + value to Brand
- 41. + Engaged customers = + Value of Customer List
- 42. Successful Companies Have High ROAs.
- 43. Social Media can help you swing it.
- 44. ?
- 45. Contact: Justin Whitaker MicroNiche Consulting Twitter: Justinmwhitaker Email: [email_address]