Social Media: HOW TO SPEND 50% OF YOUR ONLINE MARKETING

BUDGET ON 1% OF THE RETURNS

www.TheROITeam.comfrank@theroiteam.com

• Is Social Media the new “Tulip Mania”?• Organizations are over-spending on Social Media, hoping some luck

will rub off

• Still dwarfed by Search Engine Marketing, Pay-Per-Click, and good old-fashioned offline selling

• Even Facebook can’t make any money!

Social media in 2012

CASE STUDY

• In 2010, PepsiCo made a huge investment in Facebook to engage 87 million users

• It was innovative, but....• By March 2011, Diet Coke surpassed Pepsi as the #2 soft drink.• Sales dropped by 6% in a category with an overall drop of 4.5%

CASE STUDY

• In 2010, PepsiCo made a huge investment in Facebook to engage 87 million users

• It was innovative, but....• By March 2011, Diet Coke surpassed Pepsi as the #2 soft drink.• Sales dropped by 6% in a category with an overall drop of 4.5%

• “We were wrong!”• Dropped Social Media campaign

after just one year• Moved marketing spend back into

traditional advertising

• Social interaction happens offline, not online

• Facebook: Less than 1% of fans are

active• Social Media’s ability to engage brand

advocates and drive “viral” marketing is still

very limited• Social: Better for existing

customers

Why did this happen?

CASE  STUDY

• General Motors began spending on Facebook in 2008.• Grew campaign to $10 Million annually• Announced cancellation of Facebook campaign in May, 2012• Domino effect: GM’s decision caused other large organizations to

reconsider or withdraw

• Social Media, while a good networking tool for salespeople (LinkedIn), has

consistently returned a poor ROI as a marketing platform

• Word-of-mouth happens offline (over 90% - Keller & Fay)

• Less than 1% of Facebook fans and other social media followers are

active fans who share the brand with others

The problem

• Drive online marketing through proven platforms such as Search Engine Optimization and Pay-Per-Click

• Engage prospective customers with proven platforms such as email marketing, direct mail, event marketing, and more

• Costco: Will not engage in Social Media, but strictly in Search Engine Optimization

The solution

• Top search result receives 42% clickthrough

• 62% of users click on first-page results only

• Only 23% of searchers to go Page 2• SEO: Top lead source for both B2B and B2C - Webmarketing123

• SEO on average delivers 80% of the leads @ 15% of the budget

Why SEO over Social or PPC?

Social Media ExaminerApril, 2012

• 77% of web users choose natural

over paid when searching• 67% of web users choose natural

over paid when

purchasing• Natural clickthroughs generate

25% higher conversion rate than paid

Paid or natural search?

• 40% of SEO campaigns realize ROI in excess of 500% while only 22% of pay-per-click campaigns have realized this value

• SEO cost averages 12.6% of pay-per-click

Paid or natural search?

The Sussex SEO

The Sussex SEO

SEMPO

• For every 1 click on a paid result, the organic result generates

8.5 clicks

• SEO drives over 75% of search traffic at 15% of the

budget; PPC receives less than 25% of traffic at over 80% of budget

Paid vs. natural results?

• Search  users  know  that  Google  prides  itself  with  the  

“user  experience”  and  delivering  the  most  relevant  and  useful  results  to  users

• Consumer  percep9on:  “Google  Stamp  of  Approval”  for  first-­‐page  results

• Paid  ads,  on  the  other  hand,  can  be  purchased  by  

anyone  -­‐  no  credibility

Search credibility

• Instant results: Ads showing within minutes while SEO can take months

• Can test many page variations; confirm that a page converts before SEO’ing it

• Keyword Research

• Show ads on Display Network

• Show ads for keywords you’ll never rank for SEO (competitor names, etc.)

• Retargeting to SEO & PPC leads

Why ever use PPC?

• Social  Media  fails  to  effect  “viral  marke9ng”  and  offers  poor  ROI

• Search  Engine  Marke9ng  generates  over  80%  of  both  B2B  and  B2C  leads

• Natural  search  is  far  superior  to  paid  search  and  generates  an  extreme  ROI

• Paid  search  has  its  place  and  should  be  considered  for  numerous  reasons

Conclusion:Social vs. Search vs. Paid

TESTIMONIAL

Jerry was a prominent New York attorney from YourLawyer.com He had tried EVERYTHING to grow his search engine rankings for personal injury keywords. Over 18 months, little had worked. When he came to us he was skeptical we could help him because so many "SEO Experts" had burned him and only took money without getting him a result. When he tried us, his SEO rankings grew fast. Traffic grew 21% in 1 week. 62% in 6 weeks.

TESTIMONIAL

As you probably already know, the insurance industry is VERY competitive & challenging to drive new leads for insurance keywords! Except, we just took a client to

page 1 of Google for the keyword: Insurance Lead

We took them from zero rankings to the TOP 10 out of 269 MILLION competing sites in only 3 months. Pretty cool, right? What's better is the traffic from 33,100 searches a month for this keywords! …which means a BIG sales revenue jump!

TESTIMONIAL

Druva.com is a business in the PC recovery and Hard disk recovery market. Here's what we did for them: “Laptop backup” - Google #1 - 22,500 monthly searches. “PC backup” - Google #3 - 301,000 monthly searches. “PC backup software” - Google #3 - 12,100 monthly searches. Before we started working with Druva.com they had ZERO rankings for any of these keywords. You could say we kicked their site to the top of the pile! (And made them a mint in the process)

TESTIMONIAL

As you probably already know college kids look all over for grant money. So when we took SchoolGrants.net as a client, they were skeptical we could produce page 1 Google rankings for them. We put them in the top 10 on Google for 9 separate keywords. Here are just 5 of them: “Private school grants” “grants for school” “private grants” “school grants” “schoolgrants”. Over 385,600 monthly searches are done for these 5 keywords alone. I'm sure you'll agree, That's a LOT of Free Traffic, right? However it gets better, All have HIGH competition and SchoolGrants.net was nowhere near page 1 for any of these keywords before we started working with them.

TESTIMONIAL

When a major travel website approached us wanting to increase traffic for the extraordinarily competitive search terms "hotels" and "rental cars," we were eager to take on the challenge. We took them from #9 to #1 on Google for "hotels" in only 6 weeks. And from #53 to #5 for "rental cars" in just 5 DAYS. Then, believing they could handle it "in house" going forward, they quickly lost those valuable rankings and are coming back on board as a client - this time, permanently.

Social Media: HOW TO SPEND 50% OF YOUR ONLINE MARKETING

BUDGET ON 1% OF THE RETURNS

www.TheROITeam.comfrank@theroiteam.com