Posts Tagged ‘social marketing success’

The Most Important Part of Social Media

Tuesday, December 14th, 2010

Unless you’ve been buried in a snowbank in outer Mongolia for the past two years, you’ve heard how important social media sites like Twitter, YouTube and Facebook have become to your online marketing efforts. Yet many websites are not aware of the most important part of social media marketing.

Relevance and User Engagement

We’ve talked about relevant content before. Your content must be relevant to the user or they won’t find you in any type of a search. In Social Marketing, they wont’ come back to revisit you if your content isn’t relevant to their needs. But when you deliver engaging content to that visitor, they are more likely to stay on your page or click through to additional content.

Let’s take a typical example. You have a video playing on a page with ads. Your revenue stream from this page comes from ad views. If you include a relevant Tweet stream, you retain your viewers longer, thus increasing those ad views.

Let’s say you have 100,000 people watching that video, and a new ad is served every minute at $8 CPM, but you lose 50 percent of your audience halfway through the video. By adding that relevant Tweet stream, or user-generated video reviews you could retain half of those viewers you lose.

Let’s do the math. If you could retain half of those you lost – 25,000 viewers, and your video is 30 minutes long, and your CPM is $8 per minute,  you’d gain an additional $6,000 of revenue in an hour.

Seeing that participating social commentary can inspire the “herd effect”. The more people who comment on your video or reTweet it to their friends, the more people jump on the bandwagon and join in the commentary.

Loyalty also comes into play. If a customer has an engaging experience with your brand, they are far more likely to tell their friends about that experience. With the advent of social media, that circle of friends can run into some serious numbers!

Relevant and engaging social media can drive conversions. Let’s use a retail example. Let’s say your shoppers have access to tweets about a product while viewing the product page. You have 100,000 shoppers a day. If those tweets on products or brands bring the typical 3 percent site conversion up to 4 percent for that audience – with average order value of $200- you’d see $10,000 in revenue per day, or $3.6 million for the year. At 15 percent gross margin, that’s $547,000 of net profit.

The key to accomplishing these numbers is simple to state, but often ignored. Create engaging content. Add relevant social media. Serve in an easy to use page that invites even more relevant social commentary. That’s the recipe for social media revenue and conversion success.

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