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http://blogs.forrester.com/groundswell/2006/10/calculating the.html
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Conceptually, Charlene was right on the money, but she stopped short of actually counting the money. For that, we turn to her book. This is the ROI of an executive s blog table from Groundswell: Winning in a World Transformed by Social Technologies, which Charlene Li co-authored with Josh Bernoff (Forrest Research, Inc., 2008).
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Start-Up Costs Planning and development Training for blogging executive Ongoing costs (annual) Blogging platform Brand-monitoring service IT support Content production, including executive time Review and redirection Total costs, year one Bene t analysis (annual) Advertising value: visibility/traf c (estimate 7,500 daily page views at a $2.50 cost per thousand) PR value; press stories about/driven from blog content (estimate 24 stories at value of $10K each) Word-of-mouth value: referring posts on other mediumto high-pro le blogs (estimate 370 posts at value of $100 each) Support value: support calls avoided because of information on blog (estimate 50 daily support calls avoided at $5.50 per call) Research value: customer insights (estimate comments/feedback equivalent to 5 focus groups at $8K each) Total bene ts, year one $25K 10K
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In his latest book, Web Analytics 2.0: The Art of Online Accountability and Science of Customer Centricity (Sybex,
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October 26, 2009), web analytics evangelist and top blogger Avinash Kaushik adds Opportunity Cost to the mix. If you did not blog, the resources you put into blogging would go elsewhere, into a project that could earn you money. That is opportunity cost. You may have a great patentable idea or a solution to the Middle East crisis these ideas are worth a lot. You need to price out your ideas. If I apply this concept to myself, I know that if I were not blogging, I could be paid for other work. I could perhaps work a part-time job analyzing reports for a company and get paid $100,000 a year. Opportunity cost = $100,000. So, either way, if you use time as a measure or the earning power of that time, you can come up with a cost of blogging. It is important to compute this cost for your company or for your personal efforts. Advertising, PR, word-of-mouth, support cost savings, and opportunity costs . . . Let s start simple and look at the basics of reach. How many saw what you wrote and how many got the message
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While this is the simplest question, it is not simple to answer. The easiest number to acquire is how many people came to your blog page. That s either in your web analytics tool if your blog is on your own site or a number that your blog hosting service provides.
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If all goes well, a growing number of people will subscribe to your blog via RSS feed and view it through a feed reader. FeedBurner and other tools will help track how many subscribers you have, but unlike e-mail subscribers, this is not a xed, known number but one that is derived. People do not enter their name and address into your database but tune in to your broadcast signal. Here s how FeedBurner describes it at www.google.com/support/ feedburner: FeedBurner s subscriber count is based on an approximation of how many times your feed has been requested in a 24-hour period. Subscribers is inferred from an analysis of the many different feed readers and aggregators that retrieve this feed daily. Subscribers is not computed for browsers and bots that access your feed. Subscribers counts are calculated by matching IP address and feed reader combinations, then using our detailed understanding of the multitude of readers, aggregators, and bots on the market to make additional inferences. So if I red up my reader today and had subscribed to your feed at some point in the past, your readership would be incremented by one. But just like e-mail, the fact that I subscribed and was fed your message does not necessarily mean I read your every word. It s up to individual subscribers to actually read and internalize what you were trying to communicate. Google s FeedBurner also reports on reach, which is the total number of people who have taken action viewed or clicked on the content in your feed.
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