How to achieve social media ROI.
In 2013 I started Digital Stand a social media agency on the belief that social media was about to change communications and media forever. I now hold the view if you don’t learn how to achieve social media ROI, it is going to result in the end of your business.
To achieve social media ROI, you must first know it is built on the foundation of three things.
1. The platform
2. Standing out
The platform just means you are marketing to the right platform at the right time, and of course with the right message.
And irrespective of the network the right platform (medium) is the mobile.
People looking at their phones continuously is the new normal.
The other night I was watching the news (on-demand). And they were interviewing police officers that were booking drivers who were looking at their phones while in transit. Last year alone in Australia they booked 38k drivers for looking at their phone while driving.
Imagine how many they missed?
One in 3 online minutes is now spent on the mobile phone.
Facebooks and Google’s algorithm will now prioritise your content if it performs better on the mobile platform.
On Facebook alone 9 out of 10 million Australians access Facebook every day via the mobile phone. And for Facebook or Google to provide the user with a good experience your content needs to perform well on the mobile device. If not they will prioritise someone else’s content which does.
There are now 16 million smartphones in operation in Australia. While e-marketer predicts by 2020, there will be 2.87 billion smartphones worldwide.
It is no longer the second screen. As US consumers are spending 5 hours a day on their mobile devices.
And if you have not learnt how to market to the mobile in 2017 soon you won’t be in marketing.
So if that is the platform to market to, how does one stand out? I am glad you asked.
You see every brand is starting to come to the party (social media), but only a few know how to dance.
First, you need to be bold. All this means is you can not create ads that look like your competitors or every other advertiser on the platform. They must be unique in their own right, and clearly articulate your message.
The average consumer is exposed to 5,000 ads per day. This does not take into account the social posts they see from family and friends. And it is within this volume of messaging that you need to engage the consumer emotionally and intellectually. Creating a bias for them to take action.
From a recent FMRI study, it was determined that the consumer's first response is of emotional nature. This occurs within 800 milliseconds of them seeing your image/video and copy.
At the one second point, they will start to intellectually process what your message means to them? and if they will take any action!
But your race against time does not stop there. As determined from a Microsoft consumer study in the Canadian market you have as little as 8 seconds from this point onwards to drive a deeper interaction.
With the average consumer now dropping to 8 seconds, from a previous 12. Yes, less than a goldfish at 9 seconds.
Achieving social media ROI eludes the majority of advertisers. As your starting to understand if you are not aware of the foundational building blocks, and how to measure them. Then quiet simply you are out to sea.
Should you achieve the first two positions “the right platform” and “the right message.” Facebook and Instagram's algorithm will reward you. You see one of Facebook's goals is to see average user time rise.
And with Australian’s already spending 1.7 hours a day on the platform, this can only be achieved by improving the quality of the content.
And if your advertising content achieves this, then their algorithm will reward you with greater reach, and your cost per action will also go down. To put this simply a good ad with good engagement cost less than a bad one. You are not paying for a “time” slot; you pay more for bad advertising. And what a lesson to learn?
So yes your ads must be good to achieve social media ROI. And after all is this not what you want? You see data is answering the question in real time as to whether your ad is any good at all.
Initially, you may not like the story data is telling you, but how else are you going to improve your advertising. How else are you going to achieve social media ROI?
The third and final piece of the puzzle is:
Yes to achieve social media ROI you need to target the right audience at the right time. From a Google/IPOS study back in 2015, it was determined that:
“69% of online consumers agree that the quality, timing, or relevance of a company’s message influences their perception of a brand.”
In essence, if you are targeting the right audience at the right time, you have a 7 in 10 chance of influencing their decision making. Not bad odds are they?
But targeting the right audience on social is paramount to achieving social media ROI. And when you do target the right audience, you want to educate them, enable them, and inspire them.
Your story matters, but the narrative must include lessons, experiences and emotions.
Facebook and Instagram will tell you once again through data if you are targeting the right audience. You are provided with a relevance score from 1 to 10 by the platform, and that score represents
how relevant your advertising is to that audience.
You see if you are advertising beauty treatments to a male audience your relevance score is likely to be low. Thus increasing your cost of advertising and lowering your effectiveness, and making achieving social media ROI nearly impossible. The example offered is a real one.
However, let's say you are advertising a music festival to the audience of the bands that are playing at the event? Combined with the location, and age demographic data. Your relevance score will be high. And there is a fair chance you will sell out that event early, and well in advance. The example offered is also a real one.
So should you get the platform right, the messaging right, and the audience right? Then social media ROI is the conclusion.
And of course, we explain and go much deeper than the above with all of our clients.
Interested in understanding more about social media foundational aspects. Download our free playbook below.