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Social Media ROI and CEOs – Affecting the $$$ Bottom Line


How to make $10million in one weekend of tweeting.  Is Social Media just people mucking around on Facebook with their mates or does Social Media make share prices go up or down? Tell your CEO to get a basic understanding of ROI in online community discussions and activities or pay the price. But your CEO “gets” social media, right? Ah goody.

NOTE: Just make sure Marketing/Public Relations realise that INFLUENCERS with networks that respond to call to action are heaps more effective than a dead Twitter and Facebook page with heaps of Followers but not Activity. I put INFLUENCERS in CAPS and RED because most social media activities FAIL because they don’t include them…

Boing Boing Blog, Corey Doctorow

50 Cent spent the weekend on Twitter pimping a company called H&H Imports; according to the SEC, he owns 30 million shares of the firm. Over the weekend, the shares gained $0.29, netting the rapper nearly $10 million.

From Business Insider, Joe Weisenthal

Earlier we noted that shares of HNHI added $50 million in market cap today thanks to tweets from 50 Cent aka Curtis Jackson.

Obviously he’s being compensated. How much? A LOT.

This SEC filing shows that he owned 30 million shares. Seeing as each one gained $.29 today, that’s nearly $10 million for one weekend of tweeting.

How soon do you think he sells?

Add this case study to the other one about Apple losing 4.6 billion dollars market cap in 11 minutes due to an Engadget blog post, and your on your way to CEOs heart through his/her wallet.

Apple’s stock promptly tanked on massive selling, going from $107.89 to $103.42 in six minutes (11:56 – 12:02). This wiped just over $4 billion off of Apple’s market capitalization. A lot of people lost a lot of money very quickly.

Nice Graphic to scare ’em into paying attention:

Good luck – keep hitting them where the $$$ are, and you will get through. Eventually. 🙂

Just remember – it’s not Circulation ( number of followers) but Reach/Exposure (retweets, Shares) that make the Ripple Effect happen.
Ripple across social networks
Good News (double the share price), Bad News (crash the stock), It’s all the same strategies in social media channels… are you riding the Ripples or are the Ripples riding you?


Laurel Papworth

Named by Forbes™ Magazine in the Top 50 Social Media Influencers globally, named Head of Industry, Social Media (Marketing Magazine™) and in the Power150 Media bloggers (AdAge™). CERT IV Training and Assessment certified trainer (Diplomas and Certificates etc) Adult Education. Laurel has manager Facebook Pages for Junior Masterchef, Idol, Big Brother etc. and have consulted on private online communities for banks Westpac, not for profits UNHCR & governments in SE Asia. Lecturer, social media, University of Sydney for 10 years and Laurel has 11,000 online students. Laurel Papworth personally connects to 6 million followers online and has taught around 100,000 people in the last 10 years how to be social media managers.

26 thoughts on “Social Media ROI and CEOs – Affecting the $$$ Bottom Line

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  14. Ok, this is freakin’ ridiculous.

    This isnt the roi of social media, it’s the roi of 50 cent pushing penny stocks,

    If 50 cent went on tv to plug the stock would we be calling this the roi of television?

    When a magazine (or anyone) plugs a stock are we now attributing that to whatever medium they use?

    If thats the case the roi of traditional media must be pretty damned awesome!

    1. A) 50 cent on an ad would not be as effective or B) as cheap – social disintermediates media.

      1. So 50c might as well quit all othermarketing activities and just do social then?

        Not that it matters, that wasn’t the question. My question is are we now attributing the roi to the medium? Because we both know a lot of data professionals who would take issue with that.

        1. No, I dont understand at all. This was not a huge campaign with huge funds, involving media & agencies – it was one man sending a handful of sentences to his fans. Building the channel directly without having to employ mediators (TV, agencies) is part of SocMed ROI.

        2. If you are asking if CEOs ask for ROI on TV & radio & newspaper advertising as well as social media, the answer is “hell yes”! The NewspaperWorks site is dedicated to trying to prove newspaper advertising is still relevant. CEOs ask all the time “why use social media – its often their opening line. Had it recently from the Marketing manager of a well known CEO as the first thing she said was “he wants to know “why bother”.
          *shrugs* I agree with you – if a CEO has to be told why it might be an good idea to get involved with a channel of millions of people, they shouldnt be a CEO. But they do, and I collect case studies with bottom line numbers 🙂

  15. This is a great example of just how important influential voices are, particularly as many penny stocks are ‘pushed’ this way, usually with much less success. As in all cases, be aware of the agenda and motivation of those pushing the message before buying – anything.

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