Social Media and the Dreaded ROI
Being an interactive media planner I am in a daily conversation with co-workers, clients and even friends about the measurement of interactive media and social media. Of course, nowadays, living in a state and economy that isn’t exactly letting companies and clients spend money on new advertising/marketing mediums (even if they are more cost efficient), I do not see many social media proposals crossing my path.
It’s funny that living in this day and age where there is so much information and research on how using interactive media can be the most cost effective and targeted medium out there, that clients still seem to shy away from the medium when budgets get a little tight.
But, that is besides the point of this particular blog post.
Social Media is the “new” thing for many clients and companies. Everyone is talking about “joining the conversation” and creating those company MySpace and Facebook profiles. However, as budgets do get a little tighter, I believe we are all going to hear even more questions from these companies on what social media “is doing for me”.
This is where the dreaded ROI acronym comes into play. Don’t get me wrong, advertising is all about what kind of returns the company receives. It is not a bad thing. What IS a bad thing is how companies and clients are using their definition of ROI for traditional marketing tactics, and trying to transfer it to social media.
Big mistake.
Jason Falls writes a nice post and actually has a video with well respected Katie Delhaye Paine, explaining why transfering this “old” definition is a waste of time.
In the more traditional marketing tactics, especially TV, clients and companies are buying programs based on the amount of people watching. After years of buying television media, these companies can start equating the number of “eyeballs” reached and the number of products they sell.
The thing is, that Katie and Jason also point out, is that reaching a certain amount of “eyeballs” online through social media, does not have a direct connection to a certain amount of sales. Just because you have 2,000 followers on Twitter, doesn’t mean you will be selling 50 of your products.
Companies who use social media should be using it as a way to engage consumers in a more personal and intimate way, and it should not be considered a way to “sell product” or “increase revenue”. It is true, that selling more of your product or service may come out of a great social media campaign, but it should not be the focus.
I believe one of the best ways to measure social media is through web analytic software for your website. By seeing how much your traffic has increased on your site in general or certain pages and also by seeing how many comments were posted and/or how many people registered as a user of your site, you can see how well your social media campaign is working.
Trying to promote a message or a “personality” for your brand? There are a few ways to monitor what people are saying about you and your brand, either through Google Alert or even Technorati.
The point is, there are ways to “research” what is being said about your brand or company online, and whether it is something you can go along with, or something you might want to try to change. However, getting into the trap of trying to tie social media marketing with online/offline sales will not only lead to disappointment but will most likely turn you, your boss, your ad agency, off of social media for all of the wrong reasons.
What do you think? Do you think there are ways to link sales and social media? How do you think companies should measure social media marketing?
Tags: ROI, Social Media