Tuesday, April 3rd, 2012

A New & Simple Way to Measure Social Media ROI

Millions of people around the world have been talking about brand Ireland over the course of this Saint Patrick’s Day weekend. This year, for the first time, Tourism Ireland can assess the value of that engagement and compare it to the investment we have made in creating branded messaging.

Tourism Ireland is currently ranked the third largest national tourist board on Facebook, with approximately 700,000 fans across 20 markets in eight languages. In the absence of an accepted industry standard to assess the value of this beyond simply counting fan numbers, we developed the concept of Social Equivalent Advertising Value (SEAV).

Just as the PR sector has traditionally measured its impact by the cost of buying advertising to cover the equivalent column inches, so a similar approach can be applied to social media. The more a brand message is shared, the more “column inches” are gained and the value of this can be compared to the cost of equivalent online advertising.

We identified four levels of consumer engagement with brands in social media:

*Post Impressions: viewing a brand post.
*Page Impressions: viewing a brand owner’s social platform.
*Personal Actions: consuming brand content such as photos, videos or links.
*Public Actions: sharing brand content with their network.

We then categorized the actions that consumers can take across the major social platforms into each of these groupings, and attributed a financial value to the cost of delivering a comparable consumer engagement online. This allowed us to quantify the value of our social engagement in Facebook at the end of last year at an annualized level of €1.7 million.

We have adopted SEAV as a corporate KPI and set organization-wide growth targets. These objectives drive our local marketing teams to continue to not We all know that it’s no longer the size of your social media audience that matters but rather how those people engage with you. Finally, we can place a value on the return.

Read more about how the SEAV model works and how you can apply it in your organization at http://www.scribd.com/TourismIreland

 

Mark Henry is the Central Marketing Director of Tourism Ireland, the agency responsible for promoting tourism to the island of Ireland from across the globe.

Originally published at Ignite Something on the Forbes CMO Network

One Comment

  1. I was searching for a method to determine ROI on social. I came across the article on Forbes.com and read the case study. Intelligent, valuable and easy to do. What a novel concept. Most agencies want to make it hard. There’s no value in talking over your clients head.

    Thanks

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