What is the
return on social media? Can you measure it? What metrics are
appropriate for suitable measurements? The question of the ROI currently
enjoys much attention in the corporate world. This is mainly due to the fact
that the general interest in Social Media Marketing has increased considerably,
and naturally the question of the return on investment of such marketing
practices is being raised.
Most
protagonists agree that (for the time being) the ROI for social media marketing
is hard to measure. After all, even when it comes to traditional media,
marketing controlling is an inexact science because it mostly focuses on global
contexts which have little significance for practical purposes on a small scale.
Does that mean that the search for the ROI of Social Media doesn’t make sense?
From a
business perspective it is always important to know how the income is compared
to the capital invested. Therefore the holy grail of questions when it comes to
social media is: Is there a return on investment in social media and if so, how
do you calculate it exactly?
There are
many arguments against a general ROI of your social media engagement. Imagine a
football team in which “Social Media” is one of the players. And now let’s try
to measure how big the part of this player was in the overall success of the
team. This would be far from simple as there are so many factors to consider.
However, I would like to look at this subject from different angles.
To measure
the ROI of social media, you first have to be clear about what metrics are likely
the most accurate. How many different ways to measure it are there? How do the
different platforms provide me with comparable figures? What metrics from
traditional marketing (eg “Reach”) can I apply to Social Media? ........
Amber
Naslund created some theories on her blog in which she gives more details regarding the measurement of SM success on which I agree in principle:
1. If you don’t
measure anything else, social media measurement isn’t the problem.
2. Measuring
Success is not the goal
3. Measuring
the activity is not as important as measuring the results
4. Measured
values should always be determined by the objectives
5. Causes
and correlations are different things
6. The
Interpretation of the Analysis it trickier than the measuring
7. Not all
Metrics can be standardized
9.
Measurement Reports are only the beginning and not the end
10. Measuring
Success doesn’t have to be complex to be effective
11. Performance measurement is an ongoing process of
adjustment.
12. Never underestimate the cultural and operational factors
13. Measuring Success is more important than just the ROI
And most of all:
14. “Social Media is not measurable” is just an excuse!
If we get down to the point the calculation of the Social
Media ROI is rather simple, but varies from case to case: The Social Media ROI
is the Return on your Social Media Goals! The odd characteristic of the social
media return is that you can define it to be essentially anything you want it
to be!
In reality, social media return is the value that you receive
from your social media campaign.
For instance, if the objective of your social
media campaign is to drive sales, then your social media return is the
number of sales that you can attribute to your social media campaign.
Instead of sales, say your goal is to drive consumer
insights. In this case, your social media return is the quantity and quality of
the consumer insights you get from your fans and followers.
A third example of social media return is brand awareness. If
your goal is to drive awareness of your brand, then your social media
return is brand awareness.
I could give many more examples, but the point is that social
media return is the value that you derive from social media based on the goals
of your campaign
About the Author: Foxfang Digital Solutions is the leading provider of online marketing solutions in India, well known for running highly popular and effective campaigns across all platforms. Have a look at our website: www.foxfang.com or contact us directly: info@foxfang.com
