Wednesday, February 29, 2012

Is this REALLY a good measure of social media?

In an article in today's MediaPost, Mark Silva describes a new method being used by Klout to measure the impact of social media. Klout's formula is meant to replace typical ROI used in other marketing measures with a new "return on influence."

On the surface, this makes some sense, especially since return on investment still cannot be measured on social media (and may never be).  But digging in deeper, the idea starts to fall apart.

First, the formula used to establish return on influence relies on 28 different data points to establish level of influence. Then comes the clincher: Justin Bieber is the #1 strong influencer on social media. Kim Kardashian is not far behind. Well, that's handy. We just get onto Justin Bieber's Facebook page and then start raking in the cash, right?

Really? This is what I need to take to the board room as a CMO?

My advice: Let's keep working on a way of evaluating real ROI on social media. Klout clearly has not figured it out.

Tuesday, February 28, 2012

On becoming a pinball wizard

Here's a quote from a recent interview by Gordon Wyner with Simon Clift, the former CMO of Unilever. Speaking about the evolution of communication patterns brought about by social media and other digital content, Clift says:

The best analogy I have heard is the person who said in the old days that marketing was like 10-pin bowling. You send the ball down the lane and see how many pins you knock down. You assess your success, then you take aim at the remaining ones.
Now it's like pinball. You release the ball and you may or may not have the chance to intervene in the subsequent chaos. Brand managers are going to have to become more flexible and fast. Rather than careful, measured 10-pin bowlers, they're going to have to become pinball wizards!

If you're a member of the American Marketing Association, you can access the article ("Same Game, New Rules"), from the Winter 2011 issue of Marketing Management magazine.