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frank@theroiteam.com




                            Social Media:
      HOW TO SPEND 50% OF YOUR ONLINE MARKETING
                    BUDGET ON 1% OF THE RETURNS
Social media in 2012
 • Is Social Media the new “Tulip
                                Mania”?
 •   Organizations are over-spending on Social Media, hoping some luck
     will rub off
 • Still dwarfed by Search Engine Marketing, Pay-Per-Click, and good old-
   fashioned offline selling
 • Even Facebook can’t make any money!
CASE STUDY


• In 2010, PepsiCo made a huge investment in Facebook to engage 87
  million users
• It was innovative, but....
• By March 2011, Diet Coke surpassed Pepsi as the #2 soft drink.
• Sales dropped by 6% in a category with an overall drop of 4.5%
CASE STUDY


• In 2010, PepsiCo made a huge investment in Facebook to engage 87
  million users
• It was innovative, but....
• By March 2011, Diet Coke surpassed Pepsi as the #2 soft drink.
• Sales dropped by 6% in a category with an overall drop of 4.5%

                                         •   “We were wrong!”
                                         •   Dropped Social Media campaign
                                             after just one year
                                         •   Moved marketing spend back into
                                             traditional advertising
•   Social interaction happens offline,
    not online
•   Facebook: Less than 1% of fans are
    active
•   Social Media’s ability to engage brand
    advocates and drive “viral” marketing is still
    very limited
•   Social: Better for existing
    customers



                                     Why did this happen?
CASE	
  STUDY


•   General Motors began spending on Facebook in 2008.
•   Grew campaign to $10 Million annually
•   Announced cancellation of Facebook campaign in May, 2012
•   Domino effect: GM’s decision caused other large organizations to
    reconsider or withdraw
The problem
•   Social Media, while a good networking tool for salespeople (LinkedIn), has
    consistently returned a poor ROI as a marketing
    platform
•   Word-of-mouth happens offline (over 90% - Keller & Fay)
•   Less than 1% of Facebook fans and other social media followers are
    active fans who share the brand with others
The solution
•   Drive online marketing through proven platforms such as
    Search Engine Optimization and Pay-Per-Click
•   Engage prospective customers with proven platforms such as
    email marketing, direct mail, event marketing, and more
•   Costco: Will not engage in Social Media, but strictly in Search Engine
    Optimization
Why SEO over
        Social or PPC?
• Top search result receives 42% clickthrough
• 62% of users click on first-page results only
• Only 23% of searchers to go Page 2
• SEO: Top lead source for both B2B and B2C - Webmarketing123
• SEO on average delivers 80% of the leads @ 15% of the budget
Social Media Examiner
      April, 2012
•   77% of web users choose natural
    over paid when searching
•   67% of web users choose natural
    over paid when
    purchasing
•   Natural clickthroughs generate
    25% higher
    conversion rate than
    paid




                                     Paid or natural search?
•   40% of SEO campaigns realize ROI in excess of 500% while
    only 22% of pay-per-click campaigns have realized this value
•   SEO cost   averages 12.6% of pay-per-click




                              Paid or natural search?
The Sussex SEO
The Sussex SEO
SEMPO
• For every 1 click on a paid result, the organic result generates
  8.5 clicks

• SEO drives over 75% of
  search traffic at 15% of the
  budget; PPC receives less
  than 25% of traffic at over
  80% of budget




                                Paid vs. natural results?
Search credibility
• Search	
  users	
  know	
  that	
  Google	
  prides	
  itself	
  with	
  the	
  
    “user	
  experience”	
  and	
  delivering	
  the	
  most	
  
    relevant	
  and	
  useful	
  results	
  to	
  users
• Consumer	
  percep9on:	
  “Google	
  Stamp	
  of	
  
    Approval”	
  for	
  first-­‐page	
  results
• Paid	
  ads,	
  on	
  the	
  other	
  hand,	
  can	
  be	
  purchased	
  by	
  
    anyone	
  -­‐	
  no	
  credibility
Why ever use PPC?
•   Instant results: Ads showing within minutes while SEO can take
    months
•   Can test many page variations; confirm that a page converts before
    SEO’ing it
•   Keyword Research
•   Show ads on Display Network
•   Show ads for keywords you’ll never rank for SEO (competitor names, etc.)
•   Retargeting to SEO & PPC leads
Conclusion:
Social vs. Search vs. Paid
   • Social	
  Media	
  fails	
  to	
  effect	
  “viral	
  marke9ng”	
  and	
  offers	
  poor	
  
     ROI
   • Search	
  Engine	
  Marke9ng	
  generates	
  over	
  80%	
  of	
  both	
  B2B	
  
     and	
  B2C	
  leads
   • Natural	
  search	
  is	
  far	
  superior	
  to	
  paid	
  search	
  and	
  generates	
  
     an	
  extreme	
  ROI
   • Paid	
  search	
  has	
  its	
  place	
  and	
  should	
  be	
  considered	
  for	
  
     numerous	
  reasons
TESTIMONIAL




Jerry was a prominent New York attorney from YourLawyer.com He had tried
EVERYTHING to grow his search engine rankings for personal injury keywords. Over 18
months, little had worked. When he came to us he was skeptical we could help him
because so many "SEO Experts" had burned him and only took money without getting
him a result. When he tried us, his SEO rankings grew fast.
Traffic grew 21% in 1 week. 62% in 6 weeks.
TESTIMONIAL




As you probably already know, the insurance industry is VERY competitive & challenging
to drive new leads for insurance keywords! Except, we just took a client to
page 1 of Google for the keyword: Insurance                 Lead

We took them from zero rankings to the TOP 10 out of 269 MILLION competing sites
in only 3 months. Pretty cool, right? What's better is the traffic from 33,100 searches a
month for this keywords! …which means a BIG sales revenue jump!
TESTIMONIAL




Druva.com is a business in the PC recovery and Hard disk recovery market. Here's
what we did for them: “Laptop backup” - Google #1 - 22,500 monthly searches. “PC
backup” - Google #3 - 301,000 monthly searches. “PC backup software” - Google #3 -
12,100 monthly searches. Before we started working with Druva.com they had ZERO
rankings for any of these keywords.You could say we kicked their site to the top of the
pile! (And made them a mint in the process)
TESTIMONIAL




As you probably already know college kids look all over for grant money. So when we
took SchoolGrants.net as a client, they were skeptical we could produce page 1 Google
rankings for them. We put them in the top 10 on Google for 9 separate keywords. Here
are just 5 of them: “Private school grants” “grants for school” “private grants” “school
grants” “schoolgrants”. Over 385,600 monthly searches are done for these 5 keywords
alone. I'm sure you'll agree, That's a LOT of Free Traffic, right? However it gets better, All
have HIGH competition and SchoolGrants.net was nowhere near page 1 for any of these
keywords before we started working with them.
TESTIMONIAL




When a major travel website approached us wanting to increase traffic for the
extraordinarily competitive search terms "hotels" and "rental cars," we were eager to
take on the challenge. We took them from #9 to #1 on Google for "hotels" in only 6
weeks. And from #53 to #5 for "rental cars" in just 5 DAYS. Then, believing they could
handle it "in house" going forward, they quickly lost those valuable rankings and are
coming back on board as a client - this time, permanently.
www.TheROITeam.com
frank@theroiteam.com




                          Social Media:
    HOW TO SPEND 50% OF YOUR ONLINE MARKETING
                  BUDGET ON 1% OF THE RETURNS

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Why Social Media is a Waste of Time & Money versus SEO

  • 1. www.TheROITeam.com frank@theroiteam.com Social Media: HOW TO SPEND 50% OF YOUR ONLINE MARKETING BUDGET ON 1% OF THE RETURNS
  • 2. Social media in 2012 • Is Social Media the new “Tulip Mania”? • Organizations are over-spending on Social Media, hoping some luck will rub off • Still dwarfed by Search Engine Marketing, Pay-Per-Click, and good old- fashioned offline selling • Even Facebook can’t make any money!
  • 3. CASE STUDY • In 2010, PepsiCo made a huge investment in Facebook to engage 87 million users • It was innovative, but.... • By March 2011, Diet Coke surpassed Pepsi as the #2 soft drink. • Sales dropped by 6% in a category with an overall drop of 4.5%
  • 4. CASE STUDY • In 2010, PepsiCo made a huge investment in Facebook to engage 87 million users • It was innovative, but.... • By March 2011, Diet Coke surpassed Pepsi as the #2 soft drink. • Sales dropped by 6% in a category with an overall drop of 4.5% • “We were wrong!” • Dropped Social Media campaign after just one year • Moved marketing spend back into traditional advertising
  • 5. Social interaction happens offline, not online • Facebook: Less than 1% of fans are active • Social Media’s ability to engage brand advocates and drive “viral” marketing is still very limited • Social: Better for existing customers Why did this happen?
  • 6. CASE  STUDY • General Motors began spending on Facebook in 2008. • Grew campaign to $10 Million annually • Announced cancellation of Facebook campaign in May, 2012 • Domino effect: GM’s decision caused other large organizations to reconsider or withdraw
  • 7. The problem • Social Media, while a good networking tool for salespeople (LinkedIn), has consistently returned a poor ROI as a marketing platform • Word-of-mouth happens offline (over 90% - Keller & Fay) • Less than 1% of Facebook fans and other social media followers are active fans who share the brand with others
  • 8. The solution • Drive online marketing through proven platforms such as Search Engine Optimization and Pay-Per-Click • Engage prospective customers with proven platforms such as email marketing, direct mail, event marketing, and more • Costco: Will not engage in Social Media, but strictly in Search Engine Optimization
  • 9. Why SEO over Social or PPC? • Top search result receives 42% clickthrough • 62% of users click on first-page results only • Only 23% of searchers to go Page 2 • SEO: Top lead source for both B2B and B2C - Webmarketing123 • SEO on average delivers 80% of the leads @ 15% of the budget
  • 10. Social Media Examiner April, 2012
  • 11. 77% of web users choose natural over paid when searching • 67% of web users choose natural over paid when purchasing • Natural clickthroughs generate 25% higher conversion rate than paid Paid or natural search?
  • 12. 40% of SEO campaigns realize ROI in excess of 500% while only 22% of pay-per-click campaigns have realized this value • SEO cost averages 12.6% of pay-per-click Paid or natural search?
  • 15. SEMPO
  • 16. • For every 1 click on a paid result, the organic result generates 8.5 clicks • SEO drives over 75% of search traffic at 15% of the budget; PPC receives less than 25% of traffic at over 80% of budget Paid vs. natural results?
  • 17. Search credibility • Search  users  know  that  Google  prides  itself  with  the   “user  experience”  and  delivering  the  most   relevant  and  useful  results  to  users • Consumer  percep9on:  “Google  Stamp  of   Approval”  for  first-­‐page  results • Paid  ads,  on  the  other  hand,  can  be  purchased  by   anyone  -­‐  no  credibility
  • 18. Why ever use PPC? • Instant results: Ads showing within minutes while SEO can take months • Can test many page variations; confirm that a page converts before SEO’ing it • Keyword Research • Show ads on Display Network • Show ads for keywords you’ll never rank for SEO (competitor names, etc.) • Retargeting to SEO & PPC leads
  • 19. Conclusion: Social vs. Search vs. Paid • Social  Media  fails  to  effect  “viral  marke9ng”  and  offers  poor   ROI • Search  Engine  Marke9ng  generates  over  80%  of  both  B2B   and  B2C  leads • Natural  search  is  far  superior  to  paid  search  and  generates   an  extreme  ROI • Paid  search  has  its  place  and  should  be  considered  for   numerous  reasons
  • 20. TESTIMONIAL Jerry was a prominent New York attorney from YourLawyer.com He had tried EVERYTHING to grow his search engine rankings for personal injury keywords. Over 18 months, little had worked. When he came to us he was skeptical we could help him because so many "SEO Experts" had burned him and only took money without getting him a result. When he tried us, his SEO rankings grew fast. Traffic grew 21% in 1 week. 62% in 6 weeks.
  • 21. TESTIMONIAL As you probably already know, the insurance industry is VERY competitive & challenging to drive new leads for insurance keywords! Except, we just took a client to page 1 of Google for the keyword: Insurance Lead We took them from zero rankings to the TOP 10 out of 269 MILLION competing sites in only 3 months. Pretty cool, right? What's better is the traffic from 33,100 searches a month for this keywords! …which means a BIG sales revenue jump!
  • 22. TESTIMONIAL Druva.com is a business in the PC recovery and Hard disk recovery market. Here's what we did for them: “Laptop backup” - Google #1 - 22,500 monthly searches. “PC backup” - Google #3 - 301,000 monthly searches. “PC backup software” - Google #3 - 12,100 monthly searches. Before we started working with Druva.com they had ZERO rankings for any of these keywords.You could say we kicked their site to the top of the pile! (And made them a mint in the process)
  • 23. TESTIMONIAL As you probably already know college kids look all over for grant money. So when we took SchoolGrants.net as a client, they were skeptical we could produce page 1 Google rankings for them. We put them in the top 10 on Google for 9 separate keywords. Here are just 5 of them: “Private school grants” “grants for school” “private grants” “school grants” “schoolgrants”. Over 385,600 monthly searches are done for these 5 keywords alone. I'm sure you'll agree, That's a LOT of Free Traffic, right? However it gets better, All have HIGH competition and SchoolGrants.net was nowhere near page 1 for any of these keywords before we started working with them.
  • 24. TESTIMONIAL When a major travel website approached us wanting to increase traffic for the extraordinarily competitive search terms "hotels" and "rental cars," we were eager to take on the challenge. We took them from #9 to #1 on Google for "hotels" in only 6 weeks. And from #53 to #5 for "rental cars" in just 5 DAYS. Then, believing they could handle it "in house" going forward, they quickly lost those valuable rankings and are coming back on board as a client - this time, permanently.
  • 25. www.TheROITeam.com frank@theroiteam.com Social Media: HOW TO SPEND 50% OF YOUR ONLINE MARKETING BUDGET ON 1% OF THE RETURNS