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The ROI of Social Media

THE ROI OF by: @MDGadvertising B SOCIAL MEDIA Is social media marketing effective? Return on investment is a business metric, and within social media, it's been a contentious topic. More businesses than ever are devoting an increasing amount of resources into social media marketing. How do you determine whether those efforts are successful? MAKING SENSE OF THE IMPRECISE SOCIAL MEDIA MARKETING TODAY 76% of businesses are using social networking for business objectives. 74% 96% 64% of marketers are integrating social media into their marketing plans. 11% of businesses using social media marketing have been using it for more than 3 years. of CMOS believe they'll are starting to look beyond sales goals and web metrics to identify the value of social marketing efforts. tie social media efforts of businesses using social media marketing have been using it for less than a year. to hard ROI this year. MORE THAN JUST CLICKS Marketers can put a price on increased sales or decreased costs, but far trickier is identifying the value of social media beyond dollars and cents. Metrics Used by CMOS to Measure Social Media Marketing Activities 50% 42% # of posts # of 15% contributors Increased channel sales 66% 23% Average order value Conversion 50% 68% Revenue 7% Site traffic Do not track metrics 63% 41% # of positive customer # of mentions 11% Reduced call volume mentions 7% 43% Other 63% # of page views 16% # of fans/ members Reduced returns ROI INTANGIBLES IN SOCIAL MEDIA MARKETING Beyond traditional success metrics, social media is yielding a host of intangible benefits to companies that employ social marketing strategies. Closing Business: 72% 72% of marketers researched said social media helped in this. Improvement in search 65% engine rankings in 65% of marketers investing a New Partnerships: Over the long term, social media prompts significant drops in marketing costs. 45% 45% of people invested in social media mar- keting reported this. minimum of 6 hours per week. PROVEN PLATFORMS AND TOMORROW'S TRENDS SURVEYING SOCIAL MEDIA ROI To understand what activities might return the most value, we can look at what marketers are experiencing now. A survey of CMOS revealed Facebook currently is the most valuable social marketing platform. Social Media Marketing Activity with Highest ROI Significant ROI 11.4% 10.9% 8.6% 8% 6.9% 5.1% 15.4% 14.3% Average ROI 14.3% 12% 10.3% 23.4% 37.1% 20.6% 28.6% 40% 9.7% 13.1% 18.3% No ROI 7.4% 8.6% 5.7% 14.3% 34.3% 10.3% Don't Know 40% 36% 37.7% 34.9% 24.6% 30.9% 28% Not Participating 34.9% 26.9% 20.6% 23.4% 24.6% 22.9% 12.6% 13.7% Company/brand community Due to rounding. figures may not: total 100 Facebook Ratings and reviews Twitter Linkedin Participate in industry blog/forum YouTube Company/brand blog EMERGING PLATFORMS Although the data above suggests that Facebook is the most valuable social marketing platform by ROI, marketers chose YouTube as the medium they plan to increase marketing most. Company Plans to Increase Social Media Marketing 77% 1% 12% 10% Youtube Increase 75% 1% 15% 9% Facebook I Stay the Same 75% 1% 15% 9% Blogs Decrease 73% 2% 20% Twitter No Plans to Utilize 61% 1% 26% 12% Linkedin Due to rounding, figures may not total 100 36% 40% 2% 22% Social Bookmarking 35% 36% 3% 25% Forums 55% 30% 14% Geolocation 67% 19% 13% Groupon 81% 5% 15% 9% Myspace RECRUITING THROUGH SOCIAL MEDIA SOCIAL NETWORK RECRUITING GROWTH Companies are increasingly using social networks to recruit new talent, not just new customers. SUCCESS! Companies are finding a high level of success using social media to recruit. Have you successfully hired through social media? Companies Using Social Media to Recruit 8.7% 13.7% 9.3% 64% say YES* 36% say NO 80.2% *up from 58% in 2010 68% 73.3% RECESSION, WHAT RECESSION? According to a Jobvite Social Recruiting Survey, in 2011, businesses plan to increase their budgets for social recruiting by 55% 2009 2010 2011 Currently Use Plan to Begin this Year NO STANDARD MEASUREMENT DEFINE KEY OBJECTIVES Because every business has different objectives, ROI will be different for everyone. Before adding social media to any marketing campaign companies should clearly define their objectives. What Are Your Objectives? Brand awareness Short-term Engage existing sales customers Increase your searchability Complement promotional campaign Encourage word of mouth Spread news and important information about your business THE NEW GAME PLAN According to Forrester, identifying the value of social media marketing efforts comes down to looking at four factors: 1 Brand Risk Management Are you better prepared to respond to issues that affect brand reputation? Financial Digital Have costs decreased or sales increased? Have perceptions of the brand improved? Has the brand enhanced its digital assets? mdg SOURCES: RADIAN6, MARKETING SHERPA, FORRESTER, BAZAARVOICE, EMARKETER, JOBVITESOCIAL RECRUITING, SOCIAL MEDIA EXAMINER, PROSKAUER, EQUITY MARKETING SOLUTIONS twitter: @MDGadvertising

The ROI of Social Media

shared by MDGadvertising on Sep 07
Is social media marketing effective? That’s the question being asked as more and more businesses are investing in increasing amounts of social media marketing. With no standard means of measurement...


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