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The Value of Social Media Campaigns in Japan You've started a new rotation in Brand Finance, working as the business partner for Ben & Jerry's in the Foods category, Japan. A Marketing Manager has been trialling an innovative social media campaign on both Twitter and Facebook to promote the new Peanut Butter Jelly flavour ice cream. The promotion offers consumers 10% off a tub of ice cream if they upload a photo of themselves eating Ben & Jerry's. The best photos will then be used in a future advertising campaign - in line with the latest marketing trends. Consumers can redeem the discount voucher in any national supermarket. There are mixed views on whether social media marketing campaigns are financially viable. Both campaigns have been running for one week and have the option to finish or continue for the full month. In your role as Finance Business Partner, Marketing are looking to you to recommend which one of the two campaigns is likely to result in the best return on investment if run for the full month. Email To: You From: Kensuke, Marketing Manager, Japan Subject: Review of social media campaign Hi and welcome to the Ben & Jerry's team! I urgently need your opinion on our social media campaign for the new 'peanut butter jelly' flavour. I'm keen to make it work, but after the first week we're not exactly where I'd like us to be. As you'll see from the report, the results are mixed. I look forward to hearing your views. Kensuke P.S. here are some key points from a reputable marketing blog on uncertainties and issues with calculating ROI and social media advertising. ROI from social activity can be elusive, case studies of success are scarce, and conclusions are difficult to apply across industries. Eventbrite the event planning organisation claims social media shares could be assigned a revenue value in terms of how much they delivered for the business on average. On Facebook it generates an average of $3.60 in additional gross ticket sales for each share, on Twitter $2.90. Pinterest claim that the average pin generates 78 cents in sales and drives two visits to company websites. 21% of Pinterest users bought an item in store after pinning, re-pinning or liking the product. Procter and Gamble claim to have found a direct relationship between social activity and product sales. Social media campaign statistics to date Brand Strategy Japan Increase market share by 7% in 12 months Ice Cream Market Share Japan % Market Share - Trend Q1: 10.3 Q2: 11.4 Q3: 11.2 Q4: 11.6 Marketing budget split Retail 65% Online 35% Private label Lotte Glico Morinaga Ben & Jerry's Haagen-Dazs 1 $ = 109 / 1 * = 0.0092 $ Twitter Facebook $ 1 March - 1 April Date promotion live 3 March - 3 April Price of banner advert for 1 month 9.000 9,500 Design fees 1.500 1,300 Value of 10% discount 0.38 0.38 Cost of discount 1.292 1.444 Product margin 25% 25% Sales volume 3.400 3.800 Sales revenue 12.920 14.440 8.8% (4%) % sales uplift actual (forecast) % arket share growth actual (forecast) 5.2% (4%) 1.2 (0.9%) 1.4% (0.9%) Traffic - unique visitors 950 8700 % visits converted to sales 35.7% 43.6% % visits converted to Facebook likes / Twitter followers 34% 48% Gross profit 3230 3610 5042 5119 5.04% 5.1% Campaign costs Investment as % of total Marketing budget for brand % ROI (Gross profit - campaign cost divided by campaign cost x 100) Your recommended campaign and the thinking behind your decision. How you've calculated return on investment (ROI) for each campaign. What the gross profit value in Japanese Yen () is for each campaign. How you would tailor the explanation of your recommendation to Marketing. What additional information you would want to inform your decision. Your assessment of the potential strategic value and impact of this campaign