What is the ROI of Social Media?

October 31, 2012

It’s a question we’ve frequently received. And the issue with answering it, is that it doesn’t totally make sense. ROI is a financial measurement. Marketing channels can be measured in goals and benchmarks, but ROI? Not really. You see, how can you possibly measure the ROI of having email versus not having email? Or the ROI of having a phone line? What about the ROI of the customer service representative actually answering that phone line? Can you measure the satisfaction of your prospect after that well-received customer service phone call? What about the ROI of that satisfied customer telling her friends about her positive experience? The answer is no. Which is why social marketing cannot be measured in ROI.

However, since social marketing does take place online, there are a few elements we can measure. According to a recent study by Forrester Research, there are four areas in which social media marketing can be measured. And we’re not just talking about likes, followers, fans, shares, comments, retweets, DMs, pins and check-ins; although, those can all be measured as well.

One of the ways that maintaining a positive social media presence can benefit your community is by increasing and enhancing the number of your earned and owned digital assets. By actively participating in social networking, you will be growing your Internet footprint which will only help strengthen your searchability. Google is also placing more of an emphasis on social platforms, thus making it crucial for you to participate in the game.

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*Advertising *Media *Networking *Public Relations *Real Estate *Social Media *Uncategorized *Web