roi infographic: are your social media efforts worth the money?
DESCRIPTION
Wondering if your social media initiative is providing value to your organization? Knowing how to calculate social media ROI is not always obvious, but this infographic will help you figure out how to take your social media metrics and turn them into valuable information for your business.TRANSCRIPT
Most marketers indicate social media measurement is a high priority.
Need to improve effectiveness
Need to improve integration with other marketing
Pressure to report quantified outcomes
Have or will be increasing social media budget
The right measurement tools are now available
65%
59%
48%
39%
22%
feel pressure to report qualified outcomes of social media.
48%
But, most marketers are unsure how to calculate social media ROI.
Social Media Measurement Strengths Overall
Source: 2011 Lenskold Group Marketing ROI & Measurement Study
Engagement or participation quantites 43%
36%
32%
26%
20%
19%
18%
New names generated
Prospects or leads generated
Change in awareness or perceptions
Incremental sales
Return on investment (ROI)
Incremental revenue
Less than 20% of marketers can calculate the ROI of Social Media
Lot’s of people are talking about it.
In 2010, the term “social media ROI” presented 2.5 million hits. And now, less than a year later, the same search will present over 1.5 billion.*
It’s being debated over 800 times a day in social media. And 59% of the time, the discussion is neutral. Put simply, most businesses aren’t sure how to answer these questions.*
“How do we determine ROI?”
“How do we quantify gains that aren’t financial?”
“How do we know we’re measuring the right things?”
Justifying ROI is becoming EVEN more important.
Early MajorityEarly Adopters
Innovators
Late Majority Laggards34%13.5%
2.5%34% 16%
We’re in the “third wave” of social media - the early majority, the pragmatists are asking for it.
ROI = = Percentage Return on the Investment
Benefits - Costs x 100Costs
Here’s the equation… we need benefits and costs.. (not metrics or KPIs)
Marketing Execs feel Customer Engagement leads the benefits of Social media.**
Speed of FeedbackBrand Building
Lead Generation
Customer Engagement
Low Cost
Direct Customer Communications
Customer Service
Site Traffic
Number of ContributorsNumber of Posts
Number of Page Views
Number of Positive MentionsNumber of FansCMO’s use Site Traffic
as the highest metric to measure ROI.***
Here are resources to help you calculate the social media ROI.
Video: How To Build a Business Case for Social MediaVideo: How To Calculate the ROI of Social MediaVideo: How Social Media Benefits the Whole CompanyEbook: ROI of Social Media: Myths, Truths & How To Measure White paper: Calculating the ROI of Social Media
* http://www.mutualmind.com/blog/2011/06/ceo-cmo-guide-social-media-roi/** http://www.focus.com/fyi/real-cost-social-media/*** http://odmgrp.com/wp-content/uploads/2012/02/The-Marketers-Paradox-Social-Media-ROI.jpg