Measuring The ROI Of Social Media
Social media has proven itself as a medium that serves as an extended platform for reaching and engaging the target audiences for brands & businesses.
CMOs integrate social media in their current strategies and are looking beyond sales, which indicates they understand the value of social media. Sounds nice but how do you measure the return on investment?
Whether or not to enter the social space is not even a question anymore. Even if you don’t want to be there your audience most likely will be in that space, talking about your brand. These days the question is towards the ROI of social media. Setting up a whole social media team is quite frightening for brands, because how do you measure the KPI’s and will this directly be shown in the sales numbers?
MDG Advertising made this nice video showing how the industry is measuring the ROI of social media.
MDG Advertising answers the question CMOs are having: how do you measure the ROI of social media? In short, every business has different objectives so there is no standard measurement.
So what is important to know then? Well, having clear business objectives may be an open door but is most certainly essential. Forrester recognizes this as well and recommends 4 factors to consider to measure the ROI of social media:
Have costs decreased or sales increased?
Have perceptions of the brand improved?
- Risk Management
Are you better prepared to respond to issues that affect brand reputation?
Has the brand enhanced its digital assets?
The 4 factors indicated above are really relevant, however it only matters if the results are monitored. So yes, it’s really important to set up clear brand and business objectives but don’t forget to keep track of it all.
How do you measure the ROI of your social media efforts? Let us know in the comments below.