For all the anecdotal evidence and data available that suggest advertisers should reach out to consumers through social media, the space is still viewed as a bit of the Wild West.
Companies know they're supposed to reach people via social media, they're just not sure of the particulars, like what channels to use and how to tell whether the effort is resonating with customers.
Collective Bias, a shopper marketing firm founded and headquartered in Northwest Arkansas, launched six years ago with the goal of helping brands figure out the social media marketing landscape. When the company started, it promised companies it could deliver some level of engagement from consumers.
Now the firm is guaranteeing specific engagement numbers for its clients.
As part of its Engagement Guarantee, return on investment is predetermined. So, too, are metrics such as amplification rate, or simply put, the likelihood that particular ad content will be shared and viewed by third parties.
Not hitting the engagement numbers is a "nonstarter," according to Collective Bias senior vice president for product development and analytics Ali Mirian. Since he joined the firm a little more than a year ago, Mirian has overseen extensive data analysis that led Collective Bias to develop the guarantee.
Collective Bias estimates that it reaches about 80 million unique viewers a month through its network of "influencers." Analyzing data from years worth of prior campaigns led Collective Bias to feel comfortable enough that it could guarantee engagement numbers for its clients.
Traditionally, advertising has operated on what are essentially best guesses on how many people might be reached through a campaign.
Collective Bias launched its guarantee with about a dozen "early access clients." Wide-scale implementation of the program will happen throughout the year. Campaigns are monitored daily -- sometimes by the minute -- to get a sense of what sort of reach they're having, and the company can adjust its strategy accordingly.
"This may sound self-important, but we think this is incredibly groundbreaking," Mirian said. "It certainly is in the world of digital and social. There hasn't been a player to make this level of guarantee and have this level of confidence. Social is such a moving target, but we're monitoring internally every day. We've mitigated for doomsday. This is a real-time world. We're doing diagnostics in real time."
That Collective Bias is involved in a groundbreaking campaign isn't much of a surprise if you've followed the company.
Annual revenue is north of $21 million, and Forbes has twice named Collective Bias as one of "America's Most Promising Companies." Updata Partners and other investors have put about $10.5 million in funding into the company since it was founded in 2009.
Clients include Best Buy, Coca-Cola, ConAgra Foods, Disney, Procter & Gamble, Tyson, Sam's Club, Target and Walgreens. It's grown to include offices in New York, Chicago, San Francisco, Cincinnati, Minneapolis and the United Kingdom.
Collective Bias has run more than 500 campaigns for brands and retailers "creating over 700,000 pieces of content, generating over 2.8 billion impressions in 2014 alone," according to its site. Campaigns are designed to influence online search results and drive traffic to drive sales for companies.
Developing a guaranteed level of engagement with consumers was the next logical step in growing the company, Mirian said. It had collected enough data and had enough experience with campaigns that the company felt comfortable predicting what sort of influence it would have in advance.
"We have a robust data set. So much and so many types," Mirian said. "This is decidedly something we feel fits right with the type of problems shopper marketers are trying to solve. It's been met with great reception and elation. We're essentially guaranteeing a certain level of performance that is over and above ad impressions. We think that's pretty powerful."
SundayMonday Business on 05/10/2015