The $25 Tweet

Value of a tweetA marketing analytics firm is claiming that the average tweet on branded Twitter sites is worth a little over $25.

Yep, you read that correctly; $25.62, to be precise.

The revenue estimate comes to us courtesy of SumAll, a data visualization and analytics firm.  It reached that conclusion after reviewing more than 900 of its customers’ social media program efforts.  SumAll published its findings last week in an infographic.

To those who might look at the ~$25 figure and scoff (that may be most readers), it should be noted that once the total number of people who see an individual tweet is taken into consideration, the amount of revenue gained per impression is only about one half of one penny, on average.

To put this into context, $0.005 revenue-per-impression is lower than most other marketing tools and about on par for AdWords revenues-per-impression.

The imputed revenue from tweets amounts to about 1%-2% in incremental revenues, according to SumAll’s study group.

Not surprisingly, this announcement was met with questions … and some skepticism.  Asked to explain further how SumAll came up with its results, a SumAll spokesperson replied on the company’s blog:

“… Our data comes from our own user base of over 30,000 people.  We anonymize the data first and then aggregate all the data to derive new, interesting insights from a broad population.  For this infographic, we collected data from all users who have a Twitter stream and commerce stream, and conducted some calculations to derive the value of each tweet.”

There, that should clear up matters nicely, right?

As if pre-anticipating the muffled sniggers or raised eyebrows in reaction to this “non-response response,” the blog response continued:

“This is obviously a little overgeneralized, but I hope that [it] clears some things up.”

Uh-huh.  Or as radio NPR talk show host Diane Rehm might say, “All right and we’ll leave it at that.”

The experience of our clients hasn’t approached what SumAll is reporting … but I’m interested in hearing what kind of results other companies may have experienced using Twitter as a social marketing platform.  Any particularly positive stories (or negative ones) to report?  Please share you observations here.

What’s the value of a consumer’s time spent online?

The value of a consumer's time onlineIf you’ve ever wondered what the “value” is of a consumer spending time online, we have some answers courtesy of SumAll, a data visualization company.

SumAll has tapped into Google Analytics data to study patterns across ~10,000 customers and nearly $1 billion worth of transactions. What it finds is that a minute of time spent by a consumer “e-window shopping” is worth an average of 43 cents.

SumAll also calculates that one full visit to an e-commerce site is worth ~$1.30.

The company has been tracking this sort of information for a number of years, so we have some comparative statistics we can observe. In 2012, SumAll finds that the average amount of time spent per site declined by approximately 14% — from 3 minutes, 16 seconds in 2011 to 2 minutes, 49 seconds today.

Despite that decrease in time spent per online visit, the revenue generated per visit actually grew by ~24%.

What’s the reason? “Buyers are more accustomed to buying online, so the hesitation is dropping,” Dane Atkinson, SumAll’s CEO claims.

The SumAll data also suggest that an average consumer spending 1 minute, 54 seconds on a site is the amount of time needed in order for the e-retailer to make a dollar in sales.

The SumAll report concludes that a balance needs to be struck on e-commerce sites between having enough depth to be interesting … but not so much as to be overwhelming, with too many products offered and/or undue difficulty in illuminating the payment path for buyers.

According to Atkinson, aiming for an average e-commerce visit of three to four minutes is a good goal for engaging customers without confusing them with too many options.

Finally, we see from the trend data that there has been a dramatic decrease in the amount of minutes spent on a site to result in a dollar sale: it was charted at over 5 minutes back in 2009, more than three times 2012’s findings.

I guess we’ve become more nimble than ever buying online.