As social media marketing efforts increase, so does the investment required. And in today’s “age of austerity”, every significant investment now requires proof of bottom-line impact and superior value – a condition called Frugalnomics. As a result, with the social media spending increases, comes:
- Increased executive scrutiny,
- Challenges from other stakeholders who may be losing budget to these efforts.
Recent survey results from Altimeter state that measurement is indeed one of the most important aspects to social media success; in fact, the top priority reported by 48% of corporations was “Creating ROI Measurements” for internal programs. According to Altimeter, “those that can effectively measure improvements can make the business case, and can truly obtain more budget funding”.
However, even though social media ROI measurement is important, Altimeter found that benchmarking efforts are incomplete, with:
- 65% of corporations using only Engagement Data as the top measurement metric,
- a mere 22% capturing Product Revenue, a key element in quantifying value and ROI.
Our research shows that ROI results are mixed at this time, with some companies, industries and best practice leaders reaping a payback on social media marketing investments, while others struggle with low engagement levels, high costs, and poor returns.
To measure the ROI, and help others understand their own derived value, we have created the Social Media Value Chain.
See the full ROI assessment results and methodology here:
For personalised ROI Calculator and more resources visit: