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Tonight’s topic for #SM4SMB is “See how easily you can measure social media ROI.” There are many conflicting statistics published recently about the benefits of using social media for business, and it seems like the answer to settling these discrepencies is buried in how companies can measure social media ROI. Here are some thoughts to consider:
24% of the information shared via AddThis or ShareThis buttons is through Facebook. 10.8% is via Twitter, and only 11.1% is via email (below)
According to NielsenWire , Twitter, the social media darling of 2009, has retention rates around a low 40%. This is compared to Facebook and MySpace, whose retention rates were almost double during their high-growth periods.
Financial performance of the top 100 brands in the world correlates with online engagement, according to Wetpaint and the Altimeter Group.
“Back to the million-dollar question: Why do social media? We finally have a good answer: Because it pays off. While no one yet has the data to determine direct cause and effect, what we do find is a financial correlation between those who are deeply engaged and those who outperform their peers… To be specific, companies that are both deeply and widely engaged in social media surpass their peers in terms of both revenue and profit performance by a significant difference.” EngagementDB
According to research from RazorFish, we trust offline friends and TV advertisements more than most online forms of recommendation, including recommendations from our online friends.
Interactive ad spend via social media is expected to grow 34% in the next 5 years.
According to WorkplaceMedia, 89% of people don’t follow brands on social networks.
“The study, which polled 753 American workers in May, found that not having a presence on a social site made no difference to people’s opinion of a brand, because only 11% said they follow a major brand on a social network.” Cheezhead
So what do you think? With all this contrasting evidence about the value of social media, I’m curious to hear from individuals and companies who do find value in having a social media presence, and looking for tips on how companies can MEASURE this value.
Join the conversation on Twitter using the hashtag #SM4SMB at 8pm CST TONIGHT (Wed. July 22nd). Feel free to bring your own questions! Here are some to consider:
How many people are on your social media team?
How much time does your company spend on social media?
What measurements do you use to determine social media ROI?
What networks do you engage with consumers on? (Facebook, MySpace, Twitter, LinkedIn, etc)
What tools do you use to track your results?
Does your company have a formal social media strategy?
Monica O'Brien is the Director of Digital at Fizz and author of the book Social Pollination, which helps businesses leverage social media for crazy growth!
{ 3 comments }
Value is not ROI. The I is Investment, as in dollars. I can show my bosses value and impact all day long, but in the end they want to the return in dollars since that's what they invested. Until we start talking about dollar figures and not percentages or page views as ROI, we're chasing our tails.
This is interesting information about the ROI and measuring the ROI of social media | http://bit.ly/WYcwl
This is interesting information about the ROI and measuring the ROI of social media | http://bit.ly/WYcwl
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