Tuesday, May 11, 2010

Social Media have an ROI? It needs to.

As the main social media proponent for our organization, I participate and monitor our avenues constantly. As well, as the CEO, the buck stops with me, and like many executives, I demand payback on our investments. A question I have been raising lately - is all this time we spend on social media worth it?

Seems like I am not alone. When it comes to ROI as a search term, about 80%+ of the tweets / posts are about the ROI of social media..... is there any? how can it be measured?

Seems as though we are all participating in Social Media, but at the same time, all looking for value proof points.

I can honestly not say for sure whether there is an ROI yet from our efforts, however I couldn't see not participating right now on fear of missing something. MarketingSherpa's recent social media budget survey seems to indicate that I am not alone.


Only 7% indicated a confidence rating that social media is producing measurable ROI and therefore should be funded liberally. This is low, but the initiatives, like ours, are early and need time to mature.

Another 1/2 of all organizations were not as enthusiastic, but still believe in social media value, indicating conservative budget increases - based on the promise that social media will eventually produce ROI. This is the most promising of figures, but shows that social media needs to mature, because these same organizations will not continue to invest if value is not proven.

Lagging, 17% of organizations who still believe social media marketing is basically free, and should stay that way, are destined to get what they pay for.

The full results of the survey can be found at: http://www.marketingsherpa.com/article.php?ident=31612# (limited time).

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