Return social media investment
sti l l fairly new. However, t here remains a lot of confusion about how to effectively harness the power of social media and how to find out the impact that it has on your bottom line.
The beauty of social-media marketing is that with new technology, we now have exceptionally detailed data and analytical i nformation that we can use to track, amplify and lead consumer behaviour better than before and in real time. This is why companies are allocating hefty budgets and hiring social media marketers to gain better insight into their consumers’ behaviour patterns.
As a result, companies often feel the need to constantly seek out evidence of financial return in order to justify that marketing spend. “Social media, and digital communications in general, can be scrutinised a lot closer because we have the ability to analyse traffic sources and – using tools such as Google Analytics – interrogate how a consumer arrived at our product or service,” says Mike Sharman, owner of Retroviral Digital Communications, whose clients include Nando’s and SABMiller. “That being said, communication can only support business objectives, not lead them.”
The truth is that it is extremely difficult to put a monetary indicator on the return on investment (ROI) of social media because if you’re looking at ROI in the traditional sense ([earnings – cost of investment]/cost of investment) it’s hard to determine. To quote a report issued by McKinsey & Company in 2012: “There is no