bringing smart and sexy back: pay-per-success model in social media advertising

8 JUNE 2011

Bringing smart & sexy backThe pay-per-success model in social media advertising

Octavian MihaiRock&Social

Internet Week New York 8 June 2011

OCTAVIAN MIHAI :: ROCK&SOCIAL

NEW YORK INTERNET WEEK 2011 8 JUNE 2011

1. SHORT STORY OF R&S

2. SOCIAL MEDIA & BRAND COMMUNITY MODEL

3. PAY-PER-SUCCESS MODEL & BUSINESS CASE

4. Q&A FUN, FUN, FUN!



OUR STORY



THE NAME



LOGOS FROM CUTE TO SEXY



JULY 2010



AUGUST 2010



SEPTEMBER 2010



MARCH 2011

Branding by our patient partners StudioFeed.ca



BUSINESS CARDS CUTE TO SEXY



AUGUST 2010



OCTOBER 2010



MARCH 2011



MAY 2011



T-SHIRT MANIA



FOUNDING PRINCIPLES



BE GLOBAL

SOCIAL MEDIA

PAY-PER-SUCCESS

WORK WITH RESPECTFUL CLIENTS



R&S 3 TIER SERVICES

STRATEGY

PLANNING

INSIGHTS

Community managementTrainingPublic Relations

SM development Facebook appsMobile apps



R&S 3 TIER PARTNERSHIP

DIRECT CLIENTS

AGENCIES

PARTNERS



GLOBAL



MONTREAL

NEW YORK

GUADALAJARA

PARIS

8 JUNE 2011

PASSION AND THEORY



WE ARE IN THE BUSINESS OF BRAND COMMUNITY BUILDING.



NOT (ONLY) ABOUT

CONVERSATIONS



NOT (ONLY) ABOUT

ENGAGEMENT



NOT (ONLY) ABOUT

TECHNOLOGY



NOT (ONLY) ABOUT

CONVERSION



SOCIAL MEDIA



(FOR LACK OF A BETTER AND WIDELY ACCEPTED WORD)



IS ABOUT THE DEMOCRATIZATION OF IDEAS



IS ABOUT THE CREATION OF COMMUNITIES OF IDEAS



AND FROM A BUSINESS PERSPECTIVE



IT’S ABOUT CREATING



MEANINGLESS

Daniel Hernandez



OR



MEANINGFUL

Daniel Hernandez



RELATIONSHIPS BETWEEN CONSUMERS AND YOUR BRAND



SOCIAL MEDIA FACILITATES THE CREATION OF A CONSUMER BRAND COMMUNITY



Gregory A. Perez

YEEEEE…

FUN, FUN, FUN!



THESE ARE YOUR EMPLOYEES, YOUR CONSUMERS, YOUR REGULATORS



SEE YOUR BRAND COMMUNITY AS A SOCIAL CRM SYSTEM ON STEROIDS



SOCIAL MEDIA TOUCHES EVERY ASPECT OF YOUR BUSINESS



HR

MARKETING

SALES

CUSTOMER SUPPORT

PRODUCT, ETC

8 JUNE 2011

A SIMPLE BRAND COMMUNITY MODEL

BRAND COMMUNITY IS A STRATEGIC APPROACH TO BUSINESS THAT HAPPENS TO USE SOCIAL MEDIA

A STRONG BRAND COMMUNITY WILL

DECREASE MARKETING AND SALES COSTS

INCREASE BRAND EQUITY AND SALES

PROVIDE DETAILED BUSINESS INTELLIGENCE

INCREASE EMPLOYEE ENGAGEMENT AND DECREASE HR COSTS



BRAND COMMUNITY ATTRIBUTES

SIZE

ENGAGEMENT

REACH

PLATFORMS



CREATING A BRAND COMMUNITY



1. CHOOSE A BRAND COMMUNITY PLATFORM



THINK OUTSIDE OF FACEBOOK



OR NOT



GENERAL BRAND COMMUNITYAGGREGATOR : FACEBOOK, ELETTER, FORUMS…



SOCIAL CRM

SAP FACEBOOK & TWITER BUSINESS ADD-ONS



2. CREATE YOUR AMBASSADOR VIP COMMUNITY



VIP AMBASSADOR COMMUNITYDETECT ENGAGED MEMBERS

FANGAGER.com



PRIVATE VIP COMMUNITY

VIP AMBASSADOR COMMUNITY

ThisWeekInStartups.com



3. DETECT AND BUILD YOUR INFLUENCERS COMMUNITY



INFLUENCERS AROUND YOUR BRAND COMMUNITY

MVP INFLUENCER COMMUNITY

Radian6



GENERATE FEEDBACK LOOP BETWEEN YOUR BRAND COMMUNITIES TO INCREASE SIZE, ENGAGEMENT AND REACH

8 JUNE 2011

PAY-PER-SUCCESS



LINK REMUNERATION WITH RESULT MILESTONES



PAY-PER-SUCCESS ADVANTAGES



EVERYBODY IS FOCUSED ON RESULTS (AGENCY AND CLIENT)



PROCUREMENT IS HAPPY



CONSUMER GETS THE BEST DEAL



DEFINING SUCCESS KPIS



REMEMBER THAT SOCIAL MEDIA TOUCHES EVERY ASPECT OF YOUR BUSINESS



HR KPIS

NO QUALIFIED CVS

EMPLOYEE ENGAGEMENT



MARKETING KPIS

BRAND AWARENESS

MARKET SHARE VS COMPETITION



SALES KPIS

QUALIFIED LEADS

CUSTOMER ACQUISITION



COMMUNITY BASED KPIS

SIZE

ENGAGEMENT %

REACH



REMUNERATION MODELS



CLASSICAL AGENCY REMUNERATION

RETAINER BASED YEARLY BUDGET

CAMPAIGN BASED30% + 40% + 30%50% + 50%



PAY-PER-SUCCESS MILESTONE-BASED REMUNERATION

PLANNING + PRODUCTIONSTRAT, PLANNING, DEVELOPMENT

40% - 60% UPFRONT

CAMPAIGN PHASEPROPORTIONAL PAY

MILESTONE 1 - 3PERFORMANCE BASED



E.G. CLIENT PAYS

40% - 60% AT FIRST

REST ONLY AFTER AND IF 40% - 60% OF RESULTS ARE ACHIEVED



E.G. AGENCY RECEIVES

40% - 60% AT FIRST FOR PRODUCTION AND TO START THE CAMPAIGN

REST AFTER RESULTS ARE ACHIEVED

8 JUNE 2011

A SIMPLE PAY-PER-SUCCESS BUSINESS CASE & PROCESS



STEP 1

MONITOR AND ANALYZE



BRAND & CATEGORY DEVELOPMENT INDEX (BDI & CDI)

GROWTH POTENTIAL INDEX (GPI)



COMPETITOR ANALYSIS

DEMOGRAPHIC ANALYSIS



CTR, CPC, CPM, CONVERSION RATES, COST PER ACQUISITION, COST PER LEAD

PROFIT MARGINS



EXAMPLE

SAY, CLIENT NEEDS TO EXPAND HER FACEBOOK BRAND COMMUNITY



EXAMPLE

GATHER ALL NECESSARY BENCHMARKS: COMPETITOR ANALYSIS, DEMOGRAPHIC ANALYSIS, ETC



TIPS TO DEFINE KPIS

SELL AN ANALYSIS MANDATE

RUN AN INITIAL CAMPAIGN

BENCHMARK ON COMPETITION AND PREVIOUS EFFORTS



STEP 2

DEFINE YOUR CLIENT’S KPIS



EXAMPLE

COMMUNITY SIZE: 50K

ENGAGEMENT: 10%



STEP 3

ANALYSE BENCHMARKS & NEGOTIATE



EXAMPLE

QUALIFIED MEMBER: $0.75

ENGAGEMENT If under 5% then $0

If 5-10% then + $1 / engaged member

If higher than 10% then + $1.2 / engaged

member over 10%



DEFINE CAMPAIGN CRITERIA

MAXIMUM BUDGET $75 000

DURATION 3 MONTHS

ACCOUNTSACCESS ALL ACCOUNTS AND ANALYTICS

COMMUNITY MANAGEMENT

IMPLEMENT THE COMMUNITY MANAGEMENT PLAN



STEP 4

REMUNERATION MODEL



EXAMPLE

A. QUALIFIED MEMBER: $0.75



EXAMPLE

B. ENGAGEMENT / MONTHIf under 5% then $0

If 5-10% then + $1 / engaged member

If higher than 10% then + $1.2 / engaged member

over 10%



EXAMPLE

FOR 50 000 & 10% OVER 3 MONTHS ESTIMATED CAMPAIGN COST $47.500



PAY-PER-SUCCESS MILESTONE-BASED REMUNERATION

MONTH 1SETUP: STRAT + DEV

40% = 20 000 MEMBERS$15 000 TO START

MONTH 2

CAMPAIGN: PROPORTIONAL

30 000 MEMBERS

10% ENGAGEMENT

$7 500 AT 30 000 +

$3 000 / MONTH

MONTH 3

CAMPAIGN: PROPORTIONAL

60 000 MEMBERS

15% ENGAGEMENT

$22 500 AT 50 000 +

$11 000 / MONTH

END CAMPAIGN

60 000 QUALIFIED MEMBERS

15% ENGAGEMENT$59 000



PROJECTIONS

CLIENT WAS READY TO PAY $70 000

OBJECTIVES50 000 & 10% = $47.500

RESULT60 000 & 15% = $59.000



STEP 5



5



5…



5… …



DON’T YOU KNOW THAT THE TIME HAS ARRIVED…



STEP 5

EXECUTE CAMPAIGN



BE CREATIVE

MONITOR

OPTIMIZE

ITERATE FUN FUN FUN



RECAP PAY-PER-SUCCESS



1. MONITOR AND ANALYZE

2. DEFINE YOUR CLIENT’S KPIS

3. ANALYZE AND NEGOTIATE

4. BUILD REMUNERATION MODEL

5. EXECUTE CAMPAIGN

PAY-PER-SUCCESS PHASES



• 40% - 60% AT START

• HIGHER MAXIMUM BUDGET – KEEP

INCENTIVES UP – MIN 20%

• GATHER BEST DATA AND NEGOTIATE

• AGENCY MUST HAVE STRATEGIC LEAD

• CLIENT MUST PAY FAST

PAY-PER-SUCCESS RULES



LAST THOUGHTS



PAY-PER-SUCCESS WALKS THE TALK LINKING REMUNERATION WITH ADVERTISING MILESTONES



THE BRAND COMMUNITY APPROACH HELPS YOU ASK THE RIGHT QUESTIONS



SOCIAL MEDIA ADVERTISING IS ABOUT CREATIVITY AND BUILDING A COMMUNITY NOT ONLY ABOUT AD-WORDS AND PAY-PER-CLICK.



CREATIVITY CAN BE USED EVERYWHERE EVEN IN YOUR BUSINESS MODEL.

8 JUNE 2011

WHERE TO ROCK&SOCIAL?



CHAMPION PAY-PER-SUCCESS & BRAND COMMUNITY BUILDING

STAY SMART & SEXY

KEEP ON HAVING FUN



2011 OFFICIAL OPENING IN NEW YORK… STARTING THIS FALL



2012 BACK AT INTERNET WEEK THE STORY WILL CONTINUE!

8 JUNE 2011

LET IT ROCK & PLEASE CONNECT

8 JUNE 2011

Q&A



HERE IS A CUTE PIC

8 JUNE 2011

Q&A



PRESENTATION AVAILABLE AT

@ROCKANDSOCIAL

@OCTAVIANMIHAI

WWW.ROCKANDSOCIAL.COM



THANK YOU! HOPE IT HELPED!



OCTAVIAN MIHAI

CEO, Co-Founder

[email protected]@octavianmihai@rockandsocial

PHOTOS ARE PROVIDED BY THE INTERNETS.LET ME KNOW IF YOU KNOW THE CREDITS OR THEY BELONG TO YOU AND WANT ME TO TAKE THEM OUT.

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