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02/28/2010

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Linda, I attended a seminar you gave for the Anaheim/OC Visitor's and Convention Bureau. I love it! You said one thing I need clarified: ROI is media agnostic.

What does that mean?

Hi, Robyn,

I had such a great time with you at AOCVCB. Thanks for stopping by here and asking!

We must remember that ROI is a financial calculation - how much an investment in something yields (how much money we make off it). When I say "media agnositic" what I mean is ROI isn't a media measurement. ROI can apply to *anything* we do in the business.

So, measuring the "ROI" of digital or social media means we have to figure in how much money we make from the activities there. And that usually means we have to take into account how it is working with our other programs to bring in revenue - not as a stand-alone component.

I hope that helps a bit!

It does help, and thank you! I'm at a crossroads in my (small) marketing budget. I'm thinking I need to hire a part-time Social Media Manager to handle "all of that stuff". But do do so, I have to cut some print media to handle it (the old robbing Peter to pay Paul) trick. And my bosses have challenged me to show them ROI if we move the money around to Social Media. Hell, they didn't ask for ROI when I was spending $25,000 in print with OC METRO MAGAZINE, but they're asking me to prove ROI on Social Media????

Robyn, if it helps any to know you are in the same position as - literally - hundreds of professionals I consult with or talk to. So, take a deep breath.

Not surprised no ROI is required for the $25K of advertising - it's because we are comfortable with the way advertising works - and the only way we know it "works" is by watching what happens to sales. Because, we don't actually know the ROI of any particular ad, yes?

Robbing Peter to pay Paul is exactly what you have to do. There is only so much budget to go around, so this is a reality. Most people aren't as smart as realizing that though and run into trouble trying to convince the boss that it is worth adding to the budget. My advice is to pick something that doesn't seem to be working as well as it used to and shift the money from there.

So, knowing you will have to show them the money with your "pilot" program - put a plan in place (following some of the information I gave you in the presentation hopefully) to integrate social media with the rest of your marketing. Start tracking what effect social media is having on traffic to your site, what is happening with sales, and other ways you might track your social media activities to financial gains - or cost savings.

I suggest starting small with an initiative you can handle (rather than "all that stuff") - but it is crucial to decide how you will track the activity from the very beginning. Otherwise you'll have a tough time convincing the boss.

You are welcome to call me if you want to chat about some ideas.

You are not only awesomely knowledgeable, but you are extremely gracious, as well.Thank you for making my Friday better!!!

LOL - I think it is you who is gracious. Thanks, Robyn and good luck!!

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    I'm Linda [G] Zimmer and I'm glad you are here. You'll often find me in my digital identity, Znetlady.

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