ROI

Stop paying Kim Kardashian $10,000 per tweet – She’s NOT Influential if no one re-tweets

Source:  AdAge.com

Yahoo Scientist Questions ROI of Kardashian’s Sponsored TweetsDuncan Watts Explains His Model for Predicting Value of Influencers on Twitter

Ad Age Digital Conference

NEW YORK (AdAge.com) — Stop paying Kim Kardashian $10,000 per tweet. That’s the recommendation based on the work of Yahoo’s principal research scientist Duncan Watts, who presented his findings at Advertising Age’s DigitalConference.

“If you recruit enough people who, on average, influence just one other person, you could get a much better return on investment if you aggregated them and altogether paid them a tenth of what Kardashian gets.”

But in looking at influencers, Mr. Watts found that it’s incredibly hard to predict who will be a major factor on Twitter, a conclusion that runs counter to the prevailing wisdom of social epidemics popularized by the book “The Tipping Point.” While he acknowledges there are certain personalities such as Kim Kardashian who can potentially trigger a larger cascade of re-tweets given her large amount of “followers” (“Tipping Point” enthusiasts call her a connector), close studies of social platforms reveal that influence is spread more efficiently and more reliably when done through many-to-many connections, rather than through a few highly connected individuals.

“Most of them will send tweets, and no one else re-tweets,” Mr. Watts said. “A lot of times, not that many people are listening on Twitter.”

More supporting details here: http://www.marketingcharts.com/direct/celeb-twitter-followers-have-low-authority-13297

Celeb Twitter Followers Have Low Authority

While celebrities have high numbers of Twitter followers, those followers usually have minimal reach and influence, according to social media consulting firm Sysomos.

Celebrity Followers Offer More Quantity than Quality
Celebrities seem to have large amounts of followers with low Twitter authority levels (see “About the Data” for more information on how authority levels are determined). Of five celebrities examined, the average follower of President Barack Obama had the highest authority rating on a scale of 0 to 10, 2.4. The most common authority score among Obama’s roughly 4.2 million followers is 1, held by 20%.

sysomos-twitter-celeb-june-2010.jpg

Interestingly, the celebrity whose fans had the second-highest authority score of 2.1, pop singer Lady Gaga, had the second-lowest following of about 4.5 million. The most common authority score of followers of all celebrities except Obama was 0.

Actor Ashton Kutcher had the highest number of followers (about 5.1 million), and the third-highest average authority score (1.8). Pop singer Britney Spears had the lowest average follower authority score (1.3) and second-highest number of followers (about 4.8 million).

Celebrities seem to have large amounts of followers with low Twitter authority levels. This could be because they attract everyone from all walks of life. Some people may only be on Twitter to see what their favorite stars have to tweet about. In addition, most celebrity followers tracked by Sysomos had few followers themselves, pushing down their authority scores.

Social Media Heavyweight Followers Have Most Authority
Social media heavyweights, private citizens who have made a name for themselves on Twitter, had the fewest followers but the highest average authority scores for their followers. Following the pattern seen with celebrity tweeters, the social media heavyweight with the fewest followers, Jason Falls (27,195), had the highest average follower authority score (4.8).

sysomos-twitter-heavyweights-june-2010.jpg

Conversely, the two social media heavyweights with the most followers, Chris Brogan (139,693) and Jeremiah Owyang (64,775), tied for the lowest average follower authority score of 4. The most common authority score for all social media heavyweight followers was either 4 or 5.

Online Media Beats Traditional Media
On the whole, the five news/media sources tracked by Sysomos show more variety among their scores than the celebrities or social media heavyweights. However, online media sources attracted fewer followers with higher average authority scores than traditional media sources.

sysomos-twitter-newsmedia-june-2010.jpg

Online media source Read Write Web, with about 1 million followers, had an average follower authority score of 3, which was also its most common follower authority score (19%). This tied online media source Mashable in average authority score, most common authority score and percentage of followers with the most common authority score. Mashable has more followers with about 2 million.

Online media source Tech Crunch ties traditional media source Time.com with an average follower authority of 2.4 and most common follower authority score of 2, at virtually the same percentage. However, Time.com has significantly more total followers (2.1 million) than Tech Crunch (1.4 million).

Traditional media source New York Times has the highest total number of followers (about 2.5 million) and lowest average authority score (2.2). It also has by far the lowest most common authority score of 0 (22%). Not surprisingly, sources that specialize in social media attract users that are more active on Twitter.

Facebook Fans More Valuable Customers
While there is variation in the value of different types of Twitter followers, on the whole Facebook fans of a brand provide more value as customers than non-fans, according to a new study from digital consulting firm Syncapse Corp.

The average value a Facebook fan provides a brand is $136.38, but it can swing to $270.77 in the best case or go down to $0 in the worst. This value is based on Syncapse analysis of five factors per fan: product spending, brand loyalty, propensity to recommend, brand affinity and earned media value.

On average, a Facebook fan participates with a brand 10 times a year and will make one recommendation. Value can differ significantly by individual brand. For example, in the case of Coca- Cola, the best case for fan value reaches $316.78 but is $137.84 for an average fan. In the worse case scenario, a fan is worth $0.

About the Data: Using its social media monitoring and analytics platform, Sysomos looked at the authority rankings of five celebrities, five social media heavyweights and five media organizations. Rankings were based on the kind of Twitter users following these celebrities, social media heavyweights and media organizations. Each Twitter user is assigned an authority ranking between 0 to 10 – with 10 signifying someone with very high reach and influence. This authority ranking is based on the number of followers, following, updates, retweets and several similar measures used by Sysomos.

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Tuesday, May 4th, 2010 analytics 1 Comment

FREE Customer Research and Why You SHOULD Run Ideas By Your Audience First

free research on twitter – twitter ROI

what CNN should have done before they launched their radical new design (which apparently they themselves thought was really cool, but their readers and others, not so much)

RT @bmorrisssey

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Tuesday, April 6th, 2010 social networks 1 Comment

ClickZ articles by Augustine Fou, PhD

Dr. Augustine Fou is Group Chief Digital Officer of Omnicom’s Healthcare Consultancy Group. He has nearly 15 years of digital strategy consulting experience and is an expert in data mining, analytics, and consumer insights research, with specific knowledge in the consumer payments, packaged goods, food/beverage, retail/apparel, and healthcare sectors.

Dr. Fou has provided strategic counsel on the use and integration of online marketing to clients such as AT&T, IBM, Intel, ExxonMobil, MasterCard, Unilever, Pepsi, DrPepper, Frito Lay, Taco Bell. KFC. Atari, Conde Nast, Hachette Filipacchi, Victoria’s Secret, Liz Claiborne, and others. He has served as expert witness on online payments for the Federal Reserve Bank of New York, and advised government agencies such as the Norwegian Trade Counsel, the Gouvernement du Quebec, Invest in Sweden Agency, and the Canadian Consulate.

Dr. Fou is an Adjunct Professor at New York University in the Integrated Marketing Department of the School for Continuing and Professional Studies. He also writes a monthly column for ClickZ’s Experts Columns on Integrated Marketing and is a frequent speaker and panelist at online and advertising industry conferences.

He started his career with McKinsey & Company and recently served as SVP, Digital Lead at McCann/MRM Worldwide. Dr. Fou completed his PhD at MIT at the age of 23 in the Department of Materials Science and Chemical Engineering.

Recent articles by Augustine Fou

The 22 Immutable Laws of Marketing No Longer Apply, Part 3
Debunking the laws of singularity, unpredictability, success, failure, hype, acceleration, and resources. Last in a three part (3 comments) Apr 1, 2010

The 22 Immutable Laws of Marketing No Longer Apply, Part 2
Why the laws of duality, the opposite, and others no longer hold true. Second in a three-part (1 comments) Mar 4, 2010

The 22 Immutable Laws of Marketing No Longer Apply
The game has changed as the balance of power shifts away from advertisers to the very people they used to target. First in a three part (14 comments) Feb 4, 2010

10 Commandments of Modern Marketing
A list of the 10 rules every marketer should follow to meet consumer needs in (18 comments) Jan 7, 2010

Is Believing in Behavioral Targeting Like Believing in Santa?
Should we have grown out of our naïve belief in behavioral (25 comments) Dec 17, 2009

What’s Wrong With the Net Promoter Score
Three reasons why the Net Promoter score is a waste of (19 comments) Nov 19, 2009

How to Do Social Marketing in Heavily Regulated Industries
Financial services, pharmaceutical, and healthcare are ripe for social marketing. Here’s (11 comments) Oct 22, 2009

A New Definition of ‘Digital’
Defining ‘digital’ as the collection of habits and expectations of today’s consumers — and what that means to (7 comments) Sep 24, 2009

Metrics, Metrics Everywhere
Thanks to social networks and digital tools, metrics can provide relevant marketing research in real time and reveal new business (3 comments) Aug 27, 2009

Branding Today: Why It’s Ineffective, Irrelevant, Irritating, and Impotent
Brands must act on real-time consumer feedback to continuously develop awesome (51 comments) Jul 31, 2009

Advertising Does Not Create Demand, But…
It may help fulfill demand. Understand the (18 comments) Jul 2, 2009

Consumers Have Changed, So Should Advertisers
Five ways that consumers have irreversibly altered their expectations online and (7 comments) Jun 4, 2009

Social Media Benchmarks: Realities and Myths
Benchmarks to avoid and others to embrace. (5 comments) May 7, 2009

The ROI for Social Media Is Zero
If social marketing’s done right, the potential ROI could be infinite. Five tips to get you (51 comments) Apr 9, 2009

How to Use Search to Calculate the ROI of Awareness Advertising
Planning an awareness campaign in TV or other media? Advertisers can now correlate money spent on that campaign to a lift in sales — and estimate the return on (4 comments) Mar 12, 2009

Social Intensity: A New Measure for Campaign Success?
A look at two metrics that online marketers should pay attention to today. And they are not frequency and (4 comments) Feb 11, 2009

Beyond Targeting in the Age of the Modern Consumer
Three tips for using “missing link” marketing to solve targeting’s Jan 15, 2009

Experiential Marketing
Consumers are savvy and informed; they won’t just take your word on a product. Experiencing the product is more important than (1 comments) Dec 18, 2008

Search Improves All Marketing Aspects
Search is much more than just an opportunity for marketers to push out another Nov 20, 2008

Social Commerce: In Friends We Trust
How to integrate social networks into your marketing (1 comments) Nov 6, 2008

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Sunday, April 4th, 2010 digital No Comments

How low can you go? Poll of what percentage of people trust advertising

Source:  http://www.marketingcharts.com/topics/behavioral-marketing/distateful-ads-hurt-brand-appeal-12414

34%  of respondents 18 and up said soft drink advertising was the most trustworthy,

22%  said fast food advertisements rated most trustworthy

18% pharmaceutical companies

14% auto companies

13% financial services companies

If 1 in 3 or as low as 1 in 10 trust ads, even if they saw the ads, they are likely to ignore them or NOT base their purchase decisions on them. Imagine if you had spent a ton of money making the ad, and another ton of money to air or place the ad, how low the ROI would be, if any.

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Monday, March 29th, 2010 digital 1 Comment

Popular Posts – Week Ending March 19, 2010.

HP Mini 311 Nvidia ION Netbook Hackintosh’ed

Facebook advertising metrics and benchmarks

What is Web 3.0? Characteristics of Web 3.0

social media benchmarks

Samsung 52 inch HDTV $9.99 at BestBuy – purchase receipt below (6:21a eastern time August 12, 2009)

1024-bit RSA encryption cracked by carefully starving CPU of electricity

How to manufacture a viral video sensation and make viral profits – Post 2 of 2

What can search volume tell you?

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Tuesday, March 23rd, 2010 digital No Comments

Evian baby viral video has much higher ROI than Etrade baby superbowl ad

The Evian baby viral ad (red spike) got almost as much search volume as eTrade’s Superbowl ad of 2009 (blue spike). But Evian paid millions less by skipping the expense of airing the video on traditional media; instead they just posted it to YouTube for free. But notice that in both cases the effect was ephemeral (not long lasting) — notice the narrowness of the spike. Interest in the viral video also subsided quickly. But at least Evian didn’t waste millions on producing and airing it — thus achieving a massively larger ROI than Etrade who paid to make the ads and then air it at great expense on the Superbowl for the last 3 years.

etrade-baby-vs-evian-baby

Etrade Baby Ad

Evian Baby Viral Video

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Wednesday, February 24th, 2010 analytics, Branding No Comments

A new definition of “digital” – the collection of habits and expectations of modern users

By defining “digital” as not the technology, device, or channel, but rather the habits and expectations of modern users, we are able to make practical decisions about which marketing tactics, technologies, devices, and channels to use to match these users’ habits and expectations.  If you know their habit is to search, then you wouldn’t blow your whole budget on TV ads and have nothing for them to find online when they search. if you believe they expect to be able to find information from their iPhones, then you wouldn’t make your whole site high bandwidth, flashy, and Flash because they wont be able to view it at all.

Thank you all for your comments and retweets.

HamiltonWallaceA New Definition of Digital: http://bit.ly/2deV5u Article nails how “digital” is changing behavior. Listen-up marketers!

glenngabeA New Definition of ‘Digital’ http://bit.ly/2deV5u via @acfou on ClickZ

belindaangRT @randymatheson: Do we need a new definition of ‘Digital’? | ClickZ http://ow.ly/qZ4N

randymathesonDo we need a new definition of ‘Digital’? | ClickZ http://ow.ly/qZ4N

jonnylongdenRT @arkley68: Good post by @acfou – A New Definition of ‘Digital’ – http://www.clickz.com/3635052 #measure #roi

BennaPReading: the new definition of ‘digital’ from @acfou -via Clickz – excellent and informative read http://www.clickz.com/3635052

bwhigamInteresting POV – A New Definition of ‘Digital’ – http://bit.ly/2deV5u

MJinNYCRT @acfou – Branding is dead; targeting is dying; social media is not media- A new definition of digital? – http://bit.ly/TTTPC

acfouBranding is dead; targeting is dying; social media is not media – if you believe this new definition of “digital” – http://bit.ly/TTTPC

SgtWiggidyA new definition of Digital – http://bit.ly/2deV5u – Good Read!

jacqueswarrenNot so hot about his definition of digital, but this is certainly an action packed article !! http://bit.ly/2deV5u

Adtraction_RAJ_The new definition of digital – not just websites anymore. http://bit.ly/pAfEP

arkley68Good post by @acfou – A New Definition of ‘Digital’ – http://www.clickz.com/3635052 #measure #roi

MPPR755DCSRT @kathymbaird Defining ‘digital’ http://tinyurl.com/yb5f9tq I work with a ‘digital’ team I teach a ‘digital’ course. This about sums it up

jeanaandersonI just had this conversation at an interview Tues: Is Digital killing the brand? Is creative losing its pull? http://www.clickz.com/3635052

RaynaNyc‘A New Definition of Digital’ http://bit.ly/Xn2Gr Thought provoking post by @acfou (via clickz)

HeidiPatmoreRT @Jussipekka Reading A New Definition of ‘Digital’ (via @DaGood) http://www.clickz.com/3635052

kathymbairdDefining “digital” http://tinyurl.com/yb5f9tq. I work with a “digital” team. I teach a “digital” course. This about sums it up.

mktmobileA New Definition of ‘#Digital': is not about products, it’s all about habits and expectations http://bit.ly/iTH67

fsdigitalA New Definition of ‘Digital’? : http://bit.ly/moxhd

konsultantasRT @baltix A New Definition of ‘Digital’ http://htxt.it/ZnVv

JussipekkaReading A New Definition of ‘Digital’ (via @DaGood) http://www.clickz.com/3635052

baltixA New Definition of ‘Digital’ http://htxt.it/ZnVv

sunshooter81A New Definition of ‘Digital': Many people actively search for things online. And the moment they type i.. http://bit.ly/19irO8

DeanLandRecommended reading. Good piece from AC Fou: RT @acfou: How do you define “digital”? I define it thusly … http://bit.ly/TTTPC

acfouHow do you define “digital”? I define it thusly … http://bit.ly/TTTPC

LevickHow the new definition of “digital” is shaping marketing trends (from @acfou) http://bit.ly/Xn2Gr

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Thursday, September 24th, 2009 digital No Comments

RTB – real-time bidding may make ad exchanges more efficient, but it still won’t save display (ads)

in response to this mediapost article
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=113621

While RTB will make ad exchanges even more efficient, it may not be that necessary.

RTB depends on 3 things: 1) inventory, which depends on how many people hit the page to generate an impression, 2) clicks, which depend on people clicking something, and 3) bidders, the more niche you get, the fewer bidders there will be.  Inventory does not change rapidly. Clicks take time to accumulate (to yield click rates, which are a necessary ingredient in the RTB calculation). And if there are too few bidders the price of the auction “item” won’t appreciate or depreciate much or rapidly. Because of these 3 things, making bidding real-time versus non-real-time (i.e. overnight) may not make it significantly better or move the needle much on efficiency and ROI.

And RTB will still not save “display” ads. The golden age of display was in the mid 90s when people tolerated ads when they read content. They are now trained to avoid looking at the top and right of web pages So while RTB may increase the ROI of display ads by increasing click rates from a percentage with too many zeros to count to something sligtly higher, display ads are still ignored by users and will still not generate measurable business impact for advertisers.

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Saturday, September 19th, 2009 display advertising 1 Comment

The ROI of Social Media is ZERO

What is the ROI (define) for social media? It’s zero. That’s because there’s no such thing as “social media.”

People’s conversations are not media; they can’t be purchased as such by advertisers. In other words, people don’t talk whenever advertisers want them to and they won’t say whatever advertisers tell them to — so it isn’t “media” like TV, print, and radio.

If you treat people’s conversations as media, you’d be doing it wrong. Social marketing done right means asking for and respecting people’s conversations and giving them a public place to talk so others can hear. If the advertiser’s product is already great, much of the conversation will be positive. But even if it isn’t the advertiser will have the benefit of free “product research” because people will give them ideas for improvement.

twitturly1

Untargetables are hard to reach. Unreachables are not reachable by traditional advertising media or channels.

read more about the ROI of social media on ClickZ … http://www.clickz.com/3633341

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Friday, April 10th, 2009 integrated marketing No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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