We recently worked with a manufacturer of consumer household products to extend the reach of their social media programs and the amount of Social Media revenue generated via their ecommerce site. This year, the plan is to help the client ramp up their social media program activity in the pursuit of even more aggressive reach and social media revenue goals.

To achieve this, we’ve built a scalable model, that when funded per this request will generate:

  • 300% increase in Facebook fans split between the company’s brands.
  • 200% increase in revenue – direct or assisted (as measurable through Google Analytics).

To get there, the company will commit the following:

  • A social media advertising budget of at least $25,000,
  • Adequate product to support giveaways and contests.
  • The availability of unique social media coupon (or discount) codes that will allow tracking all revenue back to social media activity.

Reach And Revenue At the Current Pace…

The below graph demonstrates the trend of both Facebook fans, and social media generated or assisted revenue over time (January Year 1 to August Year 3). Using a linear regression model were able to predict that, if the mix of social media efforts applied in the future remains the same as those applied in the past, then by end of December of the current year, revenue and Facebook fans would increase to the levels indicated below:

  • 34,200 fans, and
  • $2,004 in social media revenue per month (annualized at $24,100).

Social Growth 1

What has generated the greatest growth in reach and social media revenue?

To generate the largest gains in the future we analyzed the periods of greatest growth in the past, and will replicate the most successful strategies going forward. The periods of greatest results are indicated in the below graph as 1-4 and A-D.

The below numbered and lettered items refer to the above image.

Social Growth 2

Analysis of Facebook Fan Growth

Biggest increase in fans:

  • (1 in graph above) Year 1 Holiday effort: Fan increase of 5,791 (Nov-Dec – Ran special promotions in conjunction with other brands)
  • (2 in graph above) Giveaway: Increase of 3,398 fans – May – June Year 2 (Partnered with a regional organization)
  • (3 in graph above) Year 2 Holiday effort: Fan increase of 5,235 (November -December – Ran special promotions in conjunction with other brands)
  • (4 in graph above) Combination of Pinterest contests, Facebook advertising, consistent content, mini-giveaways, and link sharing (March – August Year 3) Spent approximately $1100.

Least increase in fans:

  • June – October Year 1 – little growth – no contests, no ads, and little content.
  • January – April Year 2 – little growth – no contests, no ads, and little content.
  • June – October Year 2 – little growth – no contests, no ads, and little content.

Since October Year 2, we achieved steady fan growth without growth plateaus. This can be attributed to giveaways, Facebook advertising, consistent content generation, and link sharing.

Avoiding plateaus is important not only because it indicates positive forward momentum, but the lack of plateaus indicates that the gains are consistently greater than the typical fan decay seen once promotions end. This is significant and means that the current messaging strategy is effective.

Analysis of Social Media Revenue Growth

Biggest increase in revenue:

  • (A in graph above) Co-branding effort with a related end user business (January Year 2). Steady revenue increase January – March Year 2.
  • (B in graph above) Special Deals link share (January Year 3) by socially active personalities, i.e. bloggers. February Year 3 engagement rose as many URLs were shared on a number of Facebook pages.
  • (C in graph above) June Year 3, Special Deals link shared by socially active personalities, i.e. bloggers.  
  • (D in graph above) August Year 3, URLs Facebook posts drove significant conversions.

Conclusions – Which Strategies Work To Grow Social Media and Reach?

  • Contests and giveaways are the prime driver of increased fans.
  • The greatest social media revenue driver are endorsements made by socially active and influential people that discuss topics of interest to the company’s customers.
  • Other strong contributors to revenue are contests and giveaways.
  • Finally, Facebook (and Twitter) advertising (including traditional Facebook ads, promoted posts and retargeting), consistent content generation, and link sharing contribute to both increased fans and social media revenue. And, advertising has a positive multiplying effect on the impact of messaging and contests/giveaways.

Recommendations to increase reach and social media revenue in the current year

To improve the performance of the program, we recommend focusing on:

  • More contests,
  • More outreach to influential social active individuals,
  • Optimizing social content creation efforts, and
  • Advertising programs to promote the contests and content.

Site-Seeker proposes a contest/sweepstakes every month beginning in January. Based on historic contest performance and an expected improvement, we forecast the following increase in fans.

Month

Improvement Factor

2.25*** Expected Fans (Previous Column X Improvement Factor) Forecasted Cumulative New Fans
Contest Title – Theme Based Incremental Historic Non-Holiday Fan Increase
January

TBD

3,398*

7,646

7,646

February

TBD

3,398

7,646

15,291

March

TBD

3,398

7,646

22,937

April

TBD

3,398

7,646

30,582

May

TBD

3,398

7,646

38,228

June

TBD

3,398

7,646

45,873

July

TBD

3,398

7,646

53,519

August

TBD

3,398

7,646

61,164

September

TBD

3,398

7,646

68,810

October

TBD

3,398

7,646

76,455

November

TBD

3,398

7,646

84,101

December Home for the holidays 2014

 5,513**

 12,404

 96,505

*  3,398 is the increase in fans achieved from the contest run April through June Year 2. This was the most notable non-holiday contest.

**  5,513 is the average number of fans generated during the Year 1 and Year 2 holiday contests.

***  The improvement factor takes into account experience with promoted posts and running ads to promote contests, and the anticipated impact of the Facebook retargeting effort through AdRoll.

As seen in the below graph Site-Seeker, in Year 3, increased the average number of fans generated during non-contest-months significantly. We believe that continued or enhanced content efforts coupled with the increased number of contests, the availability of an aggressive advertising budget, and the availability of product for contests and giveaways will make achieving aggressive goals possible.

Current Year Social Media Reach Growth

casestudy3-300x295

Current Year Social Media Revenue Growth

Similar to the forecasted fan increase, Site-Seeker forecasts that the current year program described within this case study will generate significantly more revenue. A number of facts support this claim:

  1. The average monthly revenue is already increasing. Even without any improvement to the program it is forecasted to increase by 36%.

casestudy4-300x251

*      Year 3 includes January to August.

Year 2, contest-month revenue was 71% greater than non-contest-month revenue. Therefore by running contests every month, we will exceed the forecasted average monthly revenue of $2004 and approach $4,000 in monthly revenue by the end of the December 2014.

  1. We believe that these strategies will significantly improve these projections.
  2. Based on the above facts and projections, Site-Seeker feels it will be possible to generate between $60,000 and $80,000 in social media revenue in the current year.