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Only 12% of marketers feel they can measure ROI Right and below: By investing the time to cultivate social media was here to last, with 46% of business relationships, leaders planning to increase their social 3M created media budgets this year by buying ads a sustained interaction on Facebook or advertorials on groups with customers of blogs. Yet, a recent Adobe report during a crisis in mentioned that only 12% of marketers feel Singapore capable of measuring social media ROI. How is ROI currently measured? As with any other mass media, such as print ads or TV, marketers typically assess the effectiveness of their social media efforts at various points of the customer journey. To illustrate this: social media (for example, advertisements on Facebook or blogs) might help potential customers discover a product or service, form an opinion about it, have their conviction strengthened that the product/service responds to a specific need, and then decide to make the purchase. Social media analytics provide metrics that accurately estimate how many customers are converted across their journey. For instance, number of views of a Facebook advertisement might reflect an increase in awareness, or number of clicks might reflect interest about a product. Similarly, companies might use the number of fans as a reflection of their interest in their products and, finally, online purchases Companies also use more specific metrics in their strategies. To illustrate this point, capture the conversion of new customers. like product sales, referral site traffic or a brand might get more revenue from Today, most brands and companies even social product mentions. 1000 highly interactive fans who post one use one of a combination of these While each of these metrics do comment each, than from one million fans metrics to assess social media efforts. represent a portion of social media activity, who rarely interact with brands. For instance, many business-to- together, they can look like a kaleidoscope So why are these metrics so popular business (B2B) companies – such as that slows down marketers’ understanding if they are so dangerous? First, they are Dassault Systèmes, the French company of the true value of social media. Worse, very simple to assess (given that they are specialising in 3D design software and they can sometimes mislead executives numbers). Second, they are aligned with product lifecycle management solutions metrics (such as reach and frequency) – measure social media effectiveness that are well understood by companies’ through cost-per-lead or customer Mixed metrics marketing departments because acquisitions. Other measures, often can hide social they are already used for other media favoured by business-to-consumer (B2C) channels. Finally, having an army of ‘fans’ companies, include such metrics as media’s true value and ‘followers’ is a goal that is easily brand impressions, frequency and reach. communicated to senior management. Third quarter 2014 strategicmarketingafrica 27 26-29 Social Media v3.indd 39 2014/06/26 3:51 PM