One of the biggest struggles for marketers in this digital age is the ability to successfully measure social media ROI. This is an issue for many marketers because it’s truly difficult to measure the financial value of all that social media provides. Increasingly, marketers are straying away from measuring ROI and showing an increase in revenue and sales when reporting success. Rather, they value things such as engagement: reactions, shares, comments, and page follows.
While 65% of managers believe that social ROI is important, 87% do not even try to measure it. This leaves 77% of CEOs believing that marketers are not talking about what really matters most to them: sales. So, when it comes to social media marketing and ROI, what matters most? Is it being able to measure financial gains, or is it the ability to show growth, engagement and an actively involved community that values your content and message via social media?
As a San Diego website design and search engine optimization firm, we can see how the value of measuring ROI would be important to most CEOs and marketing managers. Our social media marketing department also struggles with this question, as there is a delicate balance to be had when showing results. We want to highlight the growth and engagement of a successful social media following, however, there are limitations to proving that an increase in revenues is directly correlated with a specific social media campaign.
Just the same, here are some general—overall statistics surrounding social media ROI across all businesses and industries when done correctly. Companies who have a well-established social media presence have seen a 9% increase in revenues, are 26% more profitable than their competitors, and have a 12% higher market value. The key factor in these stats, is the fact that these are well-established social media platforms that are successful both in terms of engagement as well as ROI. In order for this to happen, it simply takes time. Social media may not translate into ROI for a company right away, but if they put in the time, effort, and energy into building a strong presence, it most certainly can benefit the company in terms of ROI in the long-run.
So how should marketers approach the topic of measuring social media ROI? Marketing managers and CEOs alike should look at entering the social media realm as a necessity in this day in age, as well as an investment that (if done properly) will result in a profitable return. However, like with most investments, it is going to take some time to see the fruits of one’s labor. It is going to take financial and time investments to build a following over social media. However, once you have that following, it’s an investment that will continue to bear profitable rewards and opportunities for years to come as long as it is upkept.
Would you like some help growing your social following for the future success of your business? Our social media marketing experts would love to help grow your brand and following over social media. For more information, or a detailed quote, call (619) 291-8181 or fill out our contact form. We look forward to hearing from you.