6 years ago
 

Top 20 most valuable hotel Twitter accounts

How much is a Twitter follower worth and which hotel Twitter accounts are the most valuable?

Seventh Art Media, a social media strategist for hotels, says it studied 135 hotel Twitter accounts and 120,000 tweets from Nov. 1, 2010, to Jan. 31, 2011, and came up with some answers.

Here’s Seventh Art Media’s Top 20 Hotel Twitter Accounts by Valuation:

twitter valuation

The five hotel Twitter accounts with the highest valuation, according to Seventh Art Media, are the Cosmopolitan Hotel & Casino Las Vegas, the Four Seasons, the Venetian Las Vegas, Roger Smith Hotel and Mandarin Oriental.

The company says its ranking is global since it evaluated both the Twitter accounts of local properties and global brands.

Seventh Art Media discloses that the study’s lead author worked on social media strategy for the Cosmopolitan Hotel & Casino Las Vegas — which the study cites as having the Twitter account with the highest valuation, $445,688 — so take that into account when gauging the results.

“The valuations are all based on publicly available data of tweets, retweets, mentions through the Twitter API, so nothing is fake,” says Oliver Sohn, a partner in Seventh Art Group. “[It’s all objective — everyone can recalculate the numbers. And again, the ranking was not the goal of the paper but just a result of the valuation tool needed in the process of determining how hotels can grow valuable Twitter accounts, what strategies work well and which don’t.”

[For a more detailed explanation of the methodology, see the Note below this post.]

The chart makes clear that quality of followers and not the number of followers is key in operating a Twitter account of value.

“In just a few months’ time, the newly launched Cosmopolitan Hotel & Casino in Las Vegas has created the most valuable hotel Twitter account among all those studied,” according to the study, Hospitality Brands and Twitter — Creating a Valuable (Bottom-Line) Asset. “The highest valuation for an independent hotel’s Twitter account is the Roger Smith Hotel in New York City. In both cases, these accounts have lower followings than some of their direct competition but by focusing on engagement and building quality follower bases they have created far more value. So the question is clearly not ‘how many followers do I need?’ but ‘how do I get the right followers?'”

The study, which is available for free download here, identifies several best practices and insights for building valuable hotel Twitter accounts:

  • Focus on the long-term and “slow but quality growth.
  • Handle Facebook and Twitter accounts separately — “efforts are complementary, but should not overlap.”
  • Facebook’s value is in creating “reach and amplification,” requires strong content, but “is weak in creating sustained engagement” while “Twitter is an engagement platform.
  • Klout scores are only a starting point — “Unengaged followers are a black hole for content and add no value to a hotel’s social media efforts and investments.”
  • Now is the opportune time to invest in social media and hotels can “realize measurable ROI levels …”

NOTE on methodology and creating a valuation model for Twitter accounts: “The recommended approach is to create an equivalency with CPM-based online advertising. While we would argue that a recommendation or positive review posted via Twitter to the rightnetwork has a higher value than even the best placed banner advertisement we have insteadmodeled out impressions against an average quoted rate of $6.31 CPM specific for travel (via Adify Media).

Additional assumptions required for the Twitter valuation model have been purposefully made very conservative and aim to provide a floor for the valuation as opposed to hyping the channel. Most importantly we don’t assume universal consumption of tweets. Only 30% of Twitter accounts are considered regularly active so we have discounted reach by 70% across the network. In other words, just because a hotel tweeted and has 10,000 followers, we cannot assume that each of these potential impressions generated an actual impression. In our model we assume 3,000 followers actually saw the tweet…  By combining reach, CPM equivalency rates with average tweet, mention and retweet volumes we have made an assessment of the value of 107 of the 135 Twitter accounts we reviewed as part of this study.”

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Dennis Schaal

About the Writer :: Dennis Schaal

Dennis Schaal was North American editor for Tnooz.

 

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  1. Doug OReilly

    @Robert: Thanks for the feedback. In the report we clearly state a number of clarifying points:

    1) The ranking is for the study group only
    2) The report is designed to identify drivers of success and was initially not a valuation study. However, the valuation model proved best for differentiating underlying performance factors. Klout did not.
    3)We deliberately dropped outliers (Wynn in particular) due to the fact that much of their success is not replicable by the larger industry. This treatment of outliers is stated in the report as well.
    4) Our algorithm is very straightforward. It appears you are actually critical of the sampling frame and we were very clear in how that frame was established and the limitations of the results in the study.

    @Augie: Thanks as well. We can disagree on this point. We have a section of the report addressing the issue of sentiment and how well connected and engaged accounts can turn these opportunities into a net gain. Groupon and Kenneth are both false dichotomies as well. Much of our point is that hotels need to look at their space as a unique opportunity to connect with guests. My guess is that the Wynn, Roger Smith and other engaged hotel accounts could have turned the conversation quickly (not that they would do something so ridiculous anyway).

    In the meantime, both are good examples but underscore the limitations of Twitter as well. Groupon is still talking about China expansion and undergrads are still buying Kenneth Cole. Twitter is about the here and now. 99% of people would have trouble finding the Kenneth Cole tweets just a few weeks later. On the flip side – that is why it is great for hotels. It provides a real-time touchpoint with their guests no matter where they are.

    Thank you both for your comments. No NDAs necessary.

     
    • RobertKCole

      Doug,

      To be clear, my principal concern is the underlying methodology, so I would love to see the algorithm. With a valuation calculation that results in a Cosmo Twitter follower being valued at 122x a Marriott follower, or Cosmo being assigned a total valuation 30% higher than a group (Four Seasons) that has a Klout True Reach 2x higher than Cosmo.

      In terms of the “outliers,” I find them extremely valuable when For Wynn, I am purely wondering what valuation they would be assigned using your algorithm. With an identical Klout score and a True Reach 14x higher than Cosmo, would the Wynn valuation fall somewhere north of $6 million? Or, due to the hockey-stick effect described in the white paper, would it range substantially higher?

      Trust me, I am not a huge Klout fan – I often wonder how my Klout Score could possibly rank higher than @PhoCusWright or @hharteveldt – obviously they need to keep working on their algorithm as well… However, Klout does expose a number of valuable underlying statistics, such as True Reach which by all measures, seems to be a defensible number.

      So why am I asking to see your algorithm? Having run marketing planning for Four Seasons in the 80’s, created the Hoteligence platform while running Sabre’s hotel program in the 90’s, and tracking weekly STR US Hotel Performance stats through the 00’s, I am extremely interested in hospitality industry related benchmarking.

      On the social media front, I am well aware of the benefits & shortcomings of Twitter and other forms of social computing – I consider myself to be a staunch defender of the discipline.

      Establishing a Twitter account valuation model would be great – I just want to make certain the underlying calculations produce defensible results.

       
      • Doug O'Reilly

        Potentially Wynn might be very high and north of $1MM – but the algorithm for True Reach is relatively opaque as well and I don’t want to start comparing apples and oranges.

        Our study needed to identify a range of account types for us to capture the data in an economical yet projectible fashion for an exploratory analysis. We went for the depth – not the breadth.

        Now that the proof of concept is done we actually have a team of PhDs with extensive Twitter metrics experience partnering with us to create a tool that would include Wynn and many others. The algorithm will likely have some improvements that incorporate real time CPM or CPC ad exchange data to enhance accuracy. However, it will be based on a certain level of assumptions that anyone may or may not agree with. This is the case with any model. But once we are ready to launch we’ll let you know and we can discuss the model in detail.

         
  2. RobertKCole

    Sorry Seventh Art Media, your analysis unfortunately creates more questions than it answers, like, “Where is @WynnLasVegas with its 372,000+ followers?” or “Where is @TheMirageLV that has a higher Klout True Reach than @Cosomopolitan_LV?”

    Would love to see your algortihms – I’m happy to sign an NDA. Thinking they might need some tuning…

     
    • Augie Ray

      A CPM-based approach may bring some semblance of objectivity to this process, but it’s still a poor metric of value. By that metric, Kenneth Cole and his disastrous tweet or Groupon and their much-criticized ad campaign created tremendous value–lots of tweets mean lots of value, right? Wrong, because the sentiment of the tweet, influence of the Twitterers, and impact of the impressions are not being considered.

       
 
 

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