Measuring ROI on Social Media
February 9, 2010 by Pablo Palatnik
Many companies are putting dollars now on social media marketing as that has been the trend for the past year and a half, moreso now. The real question and an issue regarding social media marketing is how to measure your ROI. eMarketer has a great post titled, “Measuring Return on Social Investment,” which talks about this isssue.
As an online marketer and owner of a business, I measure social media success on two metrics depending on what channel we’re using. If you want to talk about Facebook Ads or Myspace Ads, you’re obviously using conversion rate and cost as a measure of ROI although that may not be considered social media marketing, moreso PPC, from a social platform. Now, if we’re talking about investing time and money into Twitter, Digg, that type of social media , traffic is really the best ROI measurement.
So, how are these companies measuring ROI, or are they even doing so?
“According to a survey by Mzinga and Babson Executive Education, less than one in five marketers measured their social media ROI in 2009.” “Marketers believe that measuring true ROI for social media is difficult,” said Geoff Ramsey, eMarketer CEO and author of the Insight Brief “Seven Guidelines for Achieving ROI from Social Media.” “There are so many metrics available that it is difficult to choose which ones are the most important. In addition, marketers do not start with clear objectives for using social media.”
There is a widespread tendency for social media marketers to focus on Website traffic as their default measurement tool. In several independent surveys and studies, Website traffic was deemed the most popular way of measuring social media marketing efforts.
Comments (2)
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Great! Nice info found here
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