Whether your business is big or small you probably feel pressure to be active on social media, if you aren’t already. The purpose of being active on social media is to provide additional substance to your brand across a mix of channels.
According to research by The Guardian, 50% of all advertising spend in the UK is digital, online spend, far outstripping the ratios in the US, Europe and the Rest of the World, where more spend on TV advertising is prevalent. Numerous factors are likely to contribute to UK businesses choosing online advertising over any other medium, but that’s not the topic of this discussion.
This discussion is concerned with how businesses can track and measure the return on their investment in social media marketing. If a business decides it wants to more actively market itself on social media then it needs to be clear about what it is trying to achieve. Social media engagement for its own sake is somewhat worthless if there’s no impact on the bottom line. The objective for businesses is to create a content strategy that turns browsers in to buyers and buyers into advocates, and the challenge for business owners and social media marketers alike is how to measure and track that journey.
Associating pound signs with social media strategy is easy when you’re talking about costs, but somewhat murky when you’re talking about return. Some analysts may formulate equations that place value on organic likes in Facebook and then apply some logic based on the cost of advertising to generate more likes, and equate average revenue per like. Others may place a value on a potential new follower on Twitter and decipher average revenue generated per Twitter follower, and thus the value of acquiring new followers. Essentially, your strategy to measure your success needs to be specific to your business and your business goals. So, look at your business plan and assess how you can devise a social media strategy that contributes to the achievement of your business goals. Secondly, you need to use the analytics tools available to you to track your progress. Whether it is Facebook likes, engagement or any other measures reported on in Facebook Insights, or the stats available from Twitter Analytics. Thirdly, decide how you wish to place a monetary value on those key metrics, and ultimately how much you are willing to invest in order to garner return. Finally, when it comes to gauging interest on specific sales posts, landing pages are useful as is the utilisation of codes when setting up Facebook offers.
In summary, there is no simple way of equating monetary return from investment in social media, without some level of guesstimation. The key is to set goals, track them and make a judgement on what, from your social media strategy, is most valuable for your business. However do not lose sight on the potential future impact Social Media will have on your brand. Remember – those followers you are developing now, could be customers in the future! Check out our blog on the Top 5 Benefits of Social Media here – http://onefoursix.co.uk/our-top-5-benefits-of-social-media/
Author: Tom Jullings
I work with clients to improve the digital marketing experience they present to their customers – from web design and SEO to outreach marketing and social media.
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