If you’ve designated some funds in your marketing budget towards social media marketing or are considering adding social media to your current marketing plan, one question has probably crossed your mind on more than one occasion. “How do I measure my return on investment?”
Social media ROI and the popular question of “what’s in it for me” are best answered by a quote from Socialnomics.
“The ROI of social media is that your business will be around in the next 5 years.”
It’s pretty blunt, but it sends the right message. It’s not a question of “should we” get into social media; it is a question of how will we adapt social media into our overall marketing strategy. The truth is, social media is here to stay. It is not a fad. It is a means for consumers to interact with the brands and businesses they choose to “invest” in with their hard earned money.
Remember when websites didn’t matter?
Social media today is where websites were 10 years ago. 10 years ago, most businesses did not see that much value in having a website because they were doing “just fine” with Yellow Page advertising and/or other forms of print advertising. Today, if you don’t have nice-looking, mobile friendly, interactive website, you are behind the times. People EXPECT to find you on the web. They EXPECT to be able to view your site on their smart phones. And, they EXPECT to be able to find information quickly and to communicate with you if they so choose.
So, although social media is still in its infancy stages, its importance and influence will only continue to grow. It’s no longer an option to ignore it.
So what’s the ROI?
There are ways to measure the return on investment of your social media marketing campaign. But how? Honestly, it depends on your business, strategy, campaign goals and your overall marketing plan. Here are a few examples:
- Increased website traffic (more people see your message)
- Improved search engine rankings (more people discover your company)
- Email list subscriptions (more people opt-in to hear from you)
- Social media community (more people trust in your brand)
- Actual sales (more money in your bank account!)
Keep in mind that in order to properly measure ROI for online or offline marketing, you need to have the proper infrastructure in place. If you don’t have all the spokes in your bicycle wheel, the wheel will eventually fall apart.