Social Media Agency Releases Amplification Model; Allows Any Brand to Calculate Relative ROI of Social Media Marketing

(PRWEB) July 02, 2012

Ignite Social Media, the original social media agency, today released their Amplification Model, a new ROI calculator that lets any brand calculate one method of social media ROI.

The model is a purchase equivalency calculator that computes the amount of money a brand would need to spend in order to buy an equivalent amount of activity via traditional online advertising sources. In other words, if a brand decided to end all social media marketing and invest the money in advertising, Ignite Social Medias new model helps a brand calculate what that would cost.

There is a lot of great research out there recently on social media ROI, and nearly all of it shows that social media can be a highly effective way to market, said Jim Tobin, president of Ignite Social Media. Calculating direct ROI, however, is difficult for a lot of reasons, but most marketers already know what they are spending in other channels and what they get. So our new Amplification Model calculates the value of the social impressions and social actions we generate relative to what they would cost to buy. Any brand can use it.

The Amplification Model calculates the value of impressions and social actions using several data points:

????Facebook Organic Impressions (from Facebook Insights)
????Clicks on Facebook Links (from your tracking links)
????Twitter Impressions (using our formula)
????Clicks on Twitter Links (from your tracking links)
????Organic YouTube Views (from YouTube Analytics)
????Blog Page Views (from your analytics tool)
????Online Brand Mentions (from your monitoring tool)

It then applies various purchase models, from cost per click to cost per thousand impressions (CPM), using the most applicable method for each. The model even includes a method for calculating Twitter impressions, which has been challenging.

One of the things I like about this model is that you can use our defaults to quickly compute an estimate of what it would cost to buy this activity or, if you know exactly what you pay in each area, you can change those to really hone the model for your industry, Tobin said. Its by no means a complete measure of social media value, since social has so many benefits, but its one way of looking at it. Were in the midst of developing others, but those are often so customized for each client that they are difficult to share widely.

A full explanation of the model, a presentation outlining it and an Excel spreadsheet for download are all available on, at


Ignite Social Media, the original social media agency, helps brands craft, execute and measure social media marketing programs that drive results. Since 2007, they have worked with a large number of household brands as their social media agencies. A list of clients and more information is at