ROI in Social Media… Justified?
October 6, 2010
I thought, should share this interesting survey done by E-consultancy whom I follow regularly! This topic is very much debatable. Perhaps an interesting post via Digi News
The post goes here…
According to a recent report, businesses that invest in marketing apparently cannot measure their growth results on any scale.
Econsultancy states, by a total poll of 47% from the entire staff of over 800 employees, that includes professionals from PR as well as marketers. An estimated 76%w claim there was no ROI amount for their entire investment on social media channels.
Below is a mention of a few statistics accumulated:
• 83% used Twitter for social media strategies.
• 83% used Facebook for social media strategies.
• 83% businesses plan to increase expenditure on social media websites.
• 28% companies do not spend any amount on social media.
• 33% have an expenditure on social media activities which is less than 5£ per year.
• 29% businesses do not have a reliable staff to execute these initiatives.
• 49% companies state resource shortage as a reason for average performance.
• 30% claim insufficient budgets to reach their company goals.
The Research Director of Econsultancy, Linus Gregoriadis recently stated, “2010 has been a year in which companies have tried to become more focused in their social media marketing activity. Much of their activity is concentrated on the use of Twitter and Facebook, with the vast majority of companies (83% and 80% of respondents respectively) using these sites as part of their social media strategy. Companies are harnessing these sites for a range of business functions including marketing, sales, and customer service and product development.”
Is the hype for social media justified with such results for business firms and brands?
To conclude it further. The hype cannot be justified at this point of time because we all know Social Media will start generating results only after sometime. At this point of time.. it is imperative to consider it strongly and include it our marketing mix. Moreover, this is not a time to actually think of results but only keep doing with best of the efforts.
Hence, this topic does not justify that Social Media is actually a hype! We have seen many brands in India who are equally adding their best efforts to engage users in different ways and have been successful. Then there are brands like Pantaloons who consider Social Media as their ATL activity
Along with the dynamism of this medium it also brings ambiguity to many of us about how successful it can be. But, the answer is Try it out first and then conclude! As I said, getting into Social Media also needs great sense of motivation and devotion. It’s not easy to manage people! :) Isn’t it?