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:
- Financial
Have costs decreased or sales increased? - Brand
Have perceptions of the brand improved? - Risk Management
Are you better prepared to respond to issues that affect brand reputation? - Digital
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.
Source: Measuring The ROI Of Social Media photo from Shutterstock, MDG Advertising
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Meansuring ROI for social media seems to be way beyond my scope at the moment or maybe I’m fooling myself. I found this article very interesting and strongly agree that businesses using social media will be way ahead of the rest. Warmly, Susan
Glad you like the article Susan. I believe measuring the ROI of social media can be done for large and small businesses alike. Entering social media is one thing, achieving your objectives probably important as well. Monitoring the results is very important in my opinion, you need to know what works and what doesn’t. ROI sounds like a big word, but I guess it all comes down what your objective was in your mind.
I like the article and the movie, however I do not think it is something for this year. I feel that this has been going on for a longer period of time…
(funny that organisations don’t worry about being accountable in old fashioned push advertising… TV. What’s the ROI on a GRP
)
I strongly believe that organisations should worry more about setting KPI’s and relevant goals.. then, and only then you can truly measure your ROI.
Define what you want to get out of your relationship and then value it if it is worth while and bringing you what you need… As Gary V says; what’s the ROI on your mom? (don’t think about that, she’s invaluable)
Your blog is very informative and i found it quite amazing and interesting.This article is great.You covered all the matters regarding social media great work.
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