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DAVID BAGCHI: The mistake a lot of marketers have made in
the social media space is entering it with a test and
learn type of mentality without surely understanding
what they're trying to achieve.
For us, it comes down to this.
What is the amount of money it takes to acquire a fan?
And a fan can be a Facebook fan.
It could be a Myspace fan.
It could be an opted in fan.
Then it becomes about, how do you create
conversation with that fan?
It could be a two-way dialogue, but it could also be
exciting them to speak about you.
One new way to think about it, from an integrated market
standpoint, is how TV actually causes fans to talk about your
brand online.
Instead of using TV as a reach based media mechanism, it's
actually more of--
we call it an entertainment mechanism.
And then, once you capture these fans, and you've got
this model in your mind of what does it cost me to
deliver a fan, you then start to understand what is the
propensity of these fans to buy your product?
Now if you're an e-commerce brand, you can measure that
very accurately.
For a CPG brand , it's a bigger challenge.
But you can use some pre-post type data and you can say,
listen, these consumers that are fans have x percent higher
likelihood to buy my brand.
You can apply that to your trial rate, and you can
actually start getting into what you would call a
social media ROI.
And the whole reason why we're interested in focusing on
social media is because we can calculate the social media ROI
for our brand.
We entered the social media space this year with very
little previous experience.
We had what you would call a social media index within our
category of 26, which is very poor.
100 index.
You can imagine some of our bigger competitors
were in the 170 range.
With a very small, four month effort, we went from
a 26 to a 74 index.
What that means is, our share of conversation that's
happening in the digital universe increased threefold
compared to the category, with a very small amount of spend.
We could not have achieved that same share of voice
growth in traditional media.