First time stopping-by your blog – great post!

As a vendor in the brand and online reputation monitoring (ORM) space, we understand some of the challenges touched on throughout this post. ROI is a central and recurring theme with communication firms/agencies, but validation of Social Media (SM) campaigns can mean different things to different companies.

I may not be helping with the ROI conundrum by using anecdotes, but IMO the enterprise landscape may find itself stuck if it is looking for traditional ways of quantifying value creation through SM.

IMO value creation is best achieved through SM when the brand and reputation lifecycle is found to be constantly evolving in an organic manner. SM is capable of disrupting the very cultures created by traditional corporations, and as such, tracking online conversation finds itself as a welcome addition to any “idea” list.

The possibility of falling out of favour with Web audiences ought to be far more compelling than any excercise to arrive at a “universal” ROI.

With regard to your question on measurement, the eco-graph
has quickly become an important metric within our platform of Reputation Measurement™ products and services. This essentially means providing business with the tools to quickly determine eco-topics which can make or break brands. An example to nicely tie-in my thoughts can be found with any discussion centered around what Web audiences perceive as “greenwash.”

Joseph

If you would like to see what an extensive social media campaign looks like in practice, you should view some of the work that H&R Block has done in the space.

The campaign is far-reaching with use of communities such as YouTube, SecondLife, Twitter, Facebook, our own branded community. The goal has been to engage consumers and move brand metrics. The pre and post measurement has been part of the rigor around these programs. Below are two links that highlight the program and can be an example that any brand can utilize social media (hey if we can make taxes engaging….)

redcouch.typepad.com/weblog/2008/04/sap-global-surv.html

http://adage.com/article?article_id=127134

cheers

If you would like to see what an extensive social media campaign looks like in practice, you should view some of the work that H&R Block has done in the space.

The campaign is far-reaching with use of communities such as YouTube, SecondLife, Twitter, Facebook, our own branded community. The goal has been to engage consumers and move brand metrics. The pre and post measurement has been part of the rigor around these programs. Below are two links that highlight the program and can be an example that any brand can utilize social media (hey if we can make taxes engaging….)

redcouch.typepad.com/weblog/2008/04/sap-global-surv.html

http://adage.com/article?article_id=127134

cheers

Thanks for the interesting read. You want to know about how much the responsibility should be on the corporation to determine ROI?

Coming from the client side, the “corporation” bears the responsibility of having their analytics established correctly from the starting point to accurately measure the results.

However, you as the agency running this campaign, are ultimately on the hook because I, as the client, am on the hook to my superiors. It is my job to convince the higher-ups that using traditional ROI needs to be a part and not just the entire measure of success for a campaign of this nature. And it is your job to give me the information so I can make that argument.

However, even if that argument is made successfully, shrewd businesses need to invest their money wisely in marketing campaigns to create not only buzz and conversations, but buzz that leads to sales.

For a business whose success depends on not only positive buzz but increased sales (whether ad or product) and quarterly and yearly numbers (that’s what investors, VCs, and potential buyers look at, not buzz index) – the first programs to get cut are going to be the ones that don’t perform to the traditional metrics.

You can have 1000 people follwing your Twitter, and 2000 images in your Flickr group, and 200,000 people who have installed your Facebook application – but if there is no bump in sales, your contract is not going to be renewed.

Unless sales isn’t the goal of your client. And there are not many of those out there that survive very long.

You do an analysis of variance (ANOVA) calculation against the $ impact of a traditional campaign conducted the year before. Marketers do it all the time. Its just that PR people run screaming from the room when you start talking statistical analysis.

However, I think what also will convince the CEO is demonstrated improvement in relationship scores on factors like credibility, trust, satisfaction, commitment, and control mutuality. Improvement in relationship scores leads to lower transaction costs, improved efficiencies, lower turnover and higher net return to shareholders.

You can take that to the bank.

Seems like ROI is the big issue. I am curious: how much of the responsibility do you put on the CORPORATION to figure this part out?

and i’m glad to see your video production group idea!

also on the social media newsroom tip: watch http://www.sonecast.net/ they’re going live in a few months with something you’ll like. no, i’m not affiliated but i’ve been talking to them.