Social Media ROI

Derek Mehraban's picture
Instructor
3/27/2011
Facebook, Social Media

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Social Media ROI is important as you work on a social media plan. It's real easy to measure Google Ads and how much traffic they drive. But measuring social media is a bit more tricky. Sure you can measure Facebook likes, Twitter retweets, or comments on your blog. But what does it all really mean? I encourage you to attach a dollar value to your efforts, and justify your social media spend. Take a look at this excellent presentation as an example. Thoughts?

 

 

Comments & Feedback

Student

As important as it is to define the ROI of any campaign, I don't think it's necessary to define exactly how effective a twitter page is. I think impressions alone are a great way to build awareness for a brand and begin a relationship. There shouldn't be a need to strictly define what the ROI is when it most likely won't even be accurate.

Student

I actually just recently attended a presentation regarding social media and ROI. I hadn't really thought about it until then. Yes, social media is a very cost effiecient marketing tool, but no one realizes that you can make a profit off of it as well. Social media allows you to create brand recognition, which ultimately and (hopefully) creates transactions for your product or company. This then ultimately creates a profit for your company or product just by the investment you made into launching those social media sites. I think that when making marketing an advertising campaigns, companies need to consider social media as an investment instead of just focusing on televesion ad spots, etc.

Student

Return on investment for social media is a new thought to me. I never actually had the thought that making a Facebook page for your company would have any real cost associated with it. Seeing this presentation I can recognize the fact that this is an investment of sorts. I thought it was very smart of xplain.co to show the relationship that your investment and roi should have one one another. Making an overlay of all the activities of your company is a very intelligent tool to use. That way you can actually see the trends and patterns your company makes. ROI is something I will be keeping in mind when working with social media in the future.

Student

I really liked this presentation.  It really makes you think about social media and it's impact on the business world.  You would think that just because a business has a lot of fans on facebook that it would be an effective marketing plan.  You dont really think about the time and money that the business has to put into maintaining a social networking page.  People have are either hired or take time out of their normal work schedule to obtain followers that may not even be dedicated to your business. How do you know that these fans are paying attention? How do you measure the success of the campaign? These are questions that I found very interesting after cycling through the document.

Student

I really like this blog because it brought up the obvious idea that time is money.  With all we have been learning about new media we have been using free social sites but what does it take to make a company known.  These companies hire people to work hard on focus groups like we learned about in our readings.  So this presentation was fun to watch and see yes it costs money to establish yourself but its not impossible.  It shows simple ways and steps on how to make a profit!  

Student

I thought this was an overall great presentation. It did a good job of of introducing social media and how to incorporate it effectively in your business. One of the things i wish that they had done a little differently was have a few more definitions of some of the terms so that it is easier to understand. I thought that other than that it was a really entertaining slideshow (especially the secretary example which I found hilarious).

Student

I really enjoyed this presentation aesthetically, but it really left me wanting more information. Karagos brings up a good point, and I agree that many businesses and people (myself included) get confused about how to connect their company's social media presence to ROI. It makes me realize that there's a lot more that goes into a successful social media campaign than just having a good idea. I think Karagos could have gotten his point across better if he used real brand examples of successful campaigns. Then the audience could get a better grasp on the overall goal of social media: ROI.

Student

I had been told by several companies and in several classes about how social media is taking over and the need to know how to use it. But this presentation just proved and showed how much of an impact social media has with out lives. What we are able to get out of it adn how easy if ran properaly iin a business sense it is to get a ROI. Take celeberties adn the money they make just for tweeting about a product. Knowing how to market your product to certain demographics can truly make you or break you on getting a ROI with social media.  This slide show gave me a few ideas on how to market myself and get a ROI.

Student

This may be a departure from the actual question being asked, but after watching it I couldn't help but think about how this was a good example of a Zen Presentation.  It's simple, concise and each slide stands on it's own. Each presents its case in minimalistic fashion. It's interesting, graphically arresting and begs (at least for me) for more information--a deeper engagement, if you will. It's a little like watching a silent movie (OK, I am NOT that old). Additionally, the presence of a narrator or presenter would have brought it to life even further which would have provided full engagement (with me). While a presenter wasn't narrating it, the true impact of the message is up for individual interpretation. Definitions, correlations and some further explanation would have added more value to the message, however that is exactly what Zen Presentation is all about...it relies more on the presenter rather than the presentation or information itself. In my opinion and like most Zen Presentations, this is not intended to be a handout offering an adequate summary of the key points of Social Media ROI. Rather it's just one of the tools of a presenter of getting his points across in an effective manner.

Student

I thought that this presentation was really entertaining. It was very eye catching and witty which is why I really liked it. The one problem I saw with the slide show was that there wasn't a lot of explanation of all the social media terms. Without previous knowledge I would have had trouble understanding some of the terms. This slide show would be a great tool to send to clients or anyone who needs some information about social media.

Student

I have always looked at social media and facebook as free advertising (other than the cost of labor to create). After watching this clip I realized that it actually has a value to it. If you do it correctly, you could create a great brand, generate brand awareness, increase word of mouth, and possibly make money! I think social media is essential to every business, no matter how big or small it is. Even if you're talking about the products you are selling or the services you provide, you're going to get someone's attention, they could learn something about the products or about your company that they didn't know previously. A lot of older people cannot grasp the concept of social media so it's great that we're learning about it in this class, it's going to open up a lot of jobs!

Student

This presentation was interesting to me because I am slightly newer to the concept of social media in the business world. Additionally, before I took this course, I'm not so sure I would have completely understood that there other other ways to measure social media besides by the number of Facebook likes, Twitter retweats or comments on a blog. Although some people may not realize this, it is important to stress that "everything you put into a social media program has a cost attached to it." Return on investment is a concept that should be well understood because it provides the value of social media to businesses. I thought this presentation was very informative!

Student

While it's important to monitor the effectiveness of any campaign, I feel that social media such as Twitter and Facebook are extremely hard to monitor the effectiveness. However, I believe that in today's world, they can be extremely effective for companies but only if they are done right. What incentives can the companies offer through their social media that will draw in customers to at least try the product/service? From there, the product should speak for itself and gain loyalty that way. Also, anytime someone "likes" or is friends with a company's page or they are being followed on Twitter, that is a great chance for the company to keep costumers updated on deals and info. of the company, products/services. Also, it is a great way to establish/maintain brand awareness which is also an extremely hard, almost unmeasurable source of effectiveness via Facebook and Twitter. However, I believe that it is important for companies to have and is effective in many ways.

Student

In anything you do, test how successful it was, so there should be no difference with social media. Measuring the effectiveness of social media isn’t impossible like most think, but it does require some work, and some trial and error. Before the slideshow, I just assumed you knew your social marketing strategy was successful if sales went up. Despite how many likes or followers the company may have, the chances of them seeing and interacting with your content may be slim.  The problem with most companies is that they aren’t set on a specific strategy when it comes to social media. The most important thing about social media sites are the content which the slideshow emphasizes. People may visit your site but its all about making them return and sharing so that you can get an ROI.

Student

I've always wondered exactly how Facebook and other social media makes it's money and this definately helped me understand it further.  It's amazing to me that actors such as Charlie Sheen are making thousands of dollars per tweet.  Where does this money come from?  There are so many more aspects that go into ROI of social media then I expected.  It actually all seems quite complicated.

Student

I think all social media "pros" need to see this presentation. I hear a lot of preaching about how great social media is and how effective it is at reaching audiences, but when asked the question, "how does social media impact the bottom line," few people know the answer. This is critical because in organizations that are accountable to investors and stakeholders, decision makers must put a monetary value on everything in order to make informed decisions. I feel many executives are hesitant to invest resources into a comprehensive social media campaign because no one has convinced them that there will be significant ROI and a substantially positive impact on the bottom line. This presentation provides a method to measure the impact of social media in terms that will convince decision makers and stakeholders.

Student

ROI is what really matters. Content is everything, its not only about getting people to your site, its about keeping them there. The market has needs that if met can provide opportunity, find those needs and capitalize on open markets. The growing importance of ROI is consistent with the increase selectivity amongst web users as the internet has been flooded with so much clutter. Social media can be either positive or negative for the client, which is why Social Media ROI is what is truly important. If you are creating value, you have a reason to survive in todays social media world, otherwise you are simply blending in and will not survive the wrath of the market. Within the new rules of marketing and pr we learn about the extreme importance on content especially within areas which require attentiveness.


Student

I agree with many of the previous posts that this presentation is very helpful in understanding more about ROI and how it can work in social media. I definitely feel like I have a better understanding of it now. I also agree with many of my classmates in the fact that while I definitely understand ROI better I am not quite sure I can successfully apply it myself. I think that I am to new to the social media world to be able to put a dollar amount on my activity. In businesses though tracking the ROI of social media pages gets more and more important as more and more social media options develop. This presentation is a greta way to understand how to do that and how it works.

Student

Measuring social media would be a very difficult task. You never know how effective different types of social media will be so it would be difficult to assign a dollar value. How much money is a "like" on Facebook worth? It is important to use social media to get consumers to your web site or to a place where they can learn more about the company and possibly purchase products. Once you see where most of your web site traffic is coming from (Facebook, Twitter, etc.), focus on those social media sites and see what drives consumers to the web site. Try to follow up and keep customers coming back to your social media sites and web sites.

Student

I think social media is still too new for any of us to understand what it can do, and how we can measure it. I believe there are some methods, however I feel like the only real forms of advertising we can measure is that we can see. I am not sure how much money one should invest into social media, but I think we know that it's important in any media plan. At least, making it accessable to those that try and search for your business or product.

Student

I think that this powerpoint presentation was a great way to understand the value of social media and how important ROI is to be successful. I am still unsure of how to really put a set price on what I have done on my social media pages, just because I feel that I do not put out enough content that people are interested in to retweet, like, etc. I think if I understood what makes a person want to follow me, or respond to me besides my friends I think it would be easier to put a value, and figure out a ROI on my social media efforts.

Student

ROI is not something the average person would think about when thinking social media for a company. Actually when I think about a company's social media I think in terms of display and what they put out there for the consumers. It is important to remember that not all social media tactics are free and to measure the ROI is important because social media can ultimately be costly if not used effectively for a company. Important to keep in mind as a college student job hunting when in the interview room talking with perspective employers.  

Student

It's definitely interesting to think about how much goes into social media as far as research etc. It is definitely not as "free" as we believe it to be. Generally, we do think of facebook and twitter as free advertising, but the amount of time that goes into the creation of the web pages sometimes is forgotten. I think the ROI for social media can be very high, especially when it's in the hands of the right people--like those that use it often. Measuring the effectiveness of the ROI on social media is also an important aspect. 

Student

Due to research that indicates that traditional media no longer generates the media potency in once did, organizations are (finally!) realizing the importance of social media and the impact it can have on brand images and sales. Measuring social media hits/impressions is difficult, yet measuring ROI presents an even larger problem. The presentation developed by Stefanos Karagos provides a tool that allows communication professionals to exhibit to clients how social media endavors can sucessfully produced ROI, and why social media should be a large part of any communication campaign.  

Student

There were alot of strategies shown in this presentation that would be useful for monitoring ROI. It stressed that ROI is about money and getting the most out of your social networking. It may be hard to monitor but it isnt impossible. I can especially understand the example given about the employee with the inappropriate content and large number of followers. Followers and retweets dont automatically mean that its positive. You have to have good content that targets the audience you want. Overlaying your data can really help you to see what is working and what isnt. You can look for patterns that can drastically help you have more effective advertising.

Student

I am still not familiar with measuring ROI and also hard to apply this strategy to social media and business. But I think the most of marketers can recognize benefit beyond more dollars for avoiding short-term gain by social media marketing such brand as consumer attitudes.  

Student

As everyone knows and says, it is never easy to exactly calculate the advertising ROI including social media ROI. As mentioned in the post, it could be easy to measure Google Ads and how much traffic they drive. Also, if advertisers/marketers "count" and "calculate" Facebook likes and Twitter retweets, it could seem easy to measure social media ROI as well; however, "counting" as well as "calculating" all the meaningful numbers (Facebook likes, Twitter retweets) do not directly indicate the success of a specific brand and advertisement in my opinion since people (or potential customers) often "like" and "retweet" just for fun and just for communicating with others without any clear intention of purchasing purpose. Therefore, I think that advertisers/marketers should be careful when they attach a dollar value to Facebook likes and Twitter retweets.

Student

The presentation stresses the importance of social media strategies, and how to measure campaign results thereof. Companies tend to focus exclusively on products and services, when the focus should be on buyer needs. Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment and/or to compare the efficiency of a number of different investments. This tends to increase sales, by generating profitable outcomes. Creating buzz through social media outlets (i.e., Facebook and Twitter) is only one aspect of a marketing and public relations plan. Therefore, there must be predetermined objectives and goals that are specific to buyers and their demands. Advertising techniques must be systematic, ultimately turning innovative ideas into greater market share for a designated business. Social media is still a new industry, so it will take profound research before any quantitative and/or qualitative conclusions can be produced.

Student

Social Media is a free media outlet that many advertising and media firms capitalize on to spread a product and/or company virally. However, it costs money to keep it updated and with the volatility of the social media outlets that is a full time job to keep the pages current.  Having a social media outlet for your company and/or product puts you on an even playing field with your competitors, because everyone is going to use free advertising when it’s available. The companies that create unique and creative ways to engage consumers to their social media sites are going to be successful because there is so much clutter in the digital market place and it is hard to obtain ones attention. All companies are different and some should invest highly in social media and other companies are trying to reach different demographics and have no need for a large social media team.   

 

Student

When looking at companies social media efforts people many times think ‘free’ advertising. Facebook and Twitter are used on their basic levels to gain followers and attempt to get people involved in conversation.  When developing content for these sites not enough consideration is given to the numerous hours that will be spent researching and conversing casually. It becomes very difficult to measure the ROI for these social platforms. That’s probably why it has become so important to put these jobs in the hands of interns with the most recent knowledge on this subject. I read what others have posted and will again reiterate that measuring ROI effectiveness will look different for different companies, brands and products. 

 

Student

I always thought that ROI was extremely hard to mesure with advertising and I would assume that would include social media as well. I think the moment that one can start calculation the ROI of advertising spent, solidifies the importance of advertising and marketing to a comparny/organization. It also will, in my opinion, begin to solidify the postion of advertisiers and social media marketers in organizations giving more job security to people in this industry.

Student

Social media is something that every company/organization needs to have; it's becoming a requirement.  Sometimes I feel like it's not exactly helping a company/organization, but it just puts that company/organization out there.  I agree that it is hard to measure success with social media.  People 'like' and 'follow' companies/organizations on Facebook and Twitter without any legitimate reason.  I think it is more important to engage the users.  It doesn't matter if you have 1 million likes/followers, but no one really posts on the wall or retweets on twitter.  Content on social media sites is very important.  It needs to have valuable information for the users, and it should also offer incentives.  Coupons can be offered through Facebook/Twitter, and success can be measured to see how many coupons are redeemed.  Even though you can't measure success, but it is undoubtedly going to create some sort of exposure.  

Student

This show provides a valid point and one that I wish we would have seen before. I have had company owners ask me how I would measure ROI with social media and didn't have an answer for them in terms of numbers based on what they were investing. That isn't usually the way that people who are advertising majors minds work, we (I) just see the creative possibilities. On another note social media isn't just a set up your facebook and twitter pages and see how many people like or follow you, they are two way relationships and the more that companies put in the more they get out of those sites. Their pages should represent them as a company show what they are doing, the people who work there and ask for feedback from their followers. A better brand image can lead to higher investment and is shown through these slides as the correlation of what happens when you use a social media sites and the trends your business' profits take afterwards.

Student

This presentation points out some very important keys in getting all you can out of social media. It's true social media isn't free, it's an investment and there's a lot of information and resources to gain from it but you have to understand the trends and why the audience is reacting the way they are. I think it's important that they mention to take into consideration is that correlation doesn't mean causation. You have to take all of the possible measurements look at them together and pinpoint key events that occured during peak highs and lows.

Student

ROI is so important because in the end, most clients want to know if their ads and promotions are being successful. This can be difficult because tracking word of mouth or the amount of people that actually saw the ad is not really possible. With social media, it makes it easier to collect data of visitors and what not, but it is still confusing to figure out what all those things mean. Like you said, so what if someone tweets you or likes your company's page. It is funny you brought this up because about a month ago my friend was asking what the point was for companies to have their own facebook page. For me I see it as a customer service type purpose, but really it is just another way of advertising. I never really thought about social media actually costing money, but it is true, whoever put in the time to do the work and continues to update the profile is gonna want to be paid. I really enjoyed this presentation, it put some clarification to the subject to me in a fast and amusing way. 

Student

I've been waiting to see a slide presentation like this. In my classes, we haven't really learned much at all about ROI, especially relating to social media. And when it comes to the business world, social media is great and all but if you can't show the ROI, there's no point in following through with it.

This is something that I think a lot of companies need to take a look at. At a past internship, my manager wanted me to set up a Twitter and Facebook page for the company without having any idea or direction for the outlets. From what I could tell, the company really wouldn't benefit from having a presence on those sites, and it would be a waste of effort to set anything up because it would likely become stagnant once I left the position.

I guess what it comes down to is just because something worked for one company doesn't mean every other company needs to follow suit.

Student

ROI is still something that confuses me a bit.  I get what it is, but translating it to social media still seems really vague. This slide show helps to illustrate what all should be included in the equation, but I'm still not sure how to assign a dollar value to most of it.

Student

Yes, I think it would make more sense if you could actually apply it from start to finish.  I sat in on a webinar on ROI for social media several months ago (http://www.activecommunities.com/thanks/measuring-social-media-roi.htm) and they talked about the importance of putting time in at the beginning and establishing values for things.  For example, quoting from one of their slides (since they really say it best) there is a "unique tracking code appended to every social media post.  FB provides impression counts for each post... (you can) track the number of views & number of clicks for each post, Clicks/impressions = CTR (Click Through Rate)." They show an example of an article they posted, and at the end of the article there's a unique tracking code.  This is the part that takes time to set up.  However, if you take the time to create this tracking code for everything, you can get lots of data on who clicked on it, how they got to it, were they went after they clicked on it, and how many people purchased things from the site based on the pages they visited.  Let's say you have 20,000 facebook fans and you create an incentive for them to go to your website.  You track that of the 20,000 fans, 8,000 went to your homepage and 1,000 of those visitors purchased something on your site. You can create a value for each facebook fan from the data you collect after following the clicks that lead to sales (Active Communities does a great job explaining it in the webinar).  I get it but would need to learn about using the metrics provided by the various social media websites to try and implement something like this.  It is cool - I'd just like someone to walk me through it! :)

Student

I think this presentation brings up a good point.  A while ago I believe I made a comment on a post talking about how relevent your social media worth is, and this ties in perfectly.  If you're on facebook with 5,000 friends, but about 80% of them are just to rack up a score, you become lost in cyberspace and completely irrelevant to social society.  Lately, I've been making it a point to use Twitter more, not just as a status updater, but to convey information I've found to others, or share ideas.  ROI only happens when you push yourself or your business.

Student

I agree with the way a lot of people commented on this blog, it depends on the business that is being portrayed through social media that will then depend on if it is transfered into return on investments. Numerous companys that use social media rely on facebook, twitter and linkedin as promotional devices. Although this is a way to get the word out to the public and can be a sort of measure though number of "likes", retweets, etc., it doesnt necessarily bring in ROI.

Student

Not only is this presentation captivating and aesthetically pleasing, but it makes a valid point.  Too often companies think that creating social media accounts will lead to engaing their consumers.  Some companies do nothing other than create a page which despite how high their fan or the number of followers, these people will forget about this page if they aren't reminded of its existence through status updates or messages.  The purpose of these sites is to engage with your customer and many companies forget to do that.

Student

I agree that social media sites need to address a consumers needs, and the only way to determine need is to know the amount of traffic is on your site. If a site has few veiwers it means it is not attracting the right number of vistors. The content may needed to be reviwed and updated. It is always important to address the consumers needs and show case the products and services.

Student

This presentation echoes what we have learned in this class and from David Meerman Scott’s book, content is king. Develop content/programs for each of your target (buyer persona). Aim to target users who are looking for the information you are presenting. Engage them by providing offers they want. When you gain their trust and establish a following, stick to the brand promises you provided. This way, your social media status goes up, and your stock goes up. Building a relationship with your buyers takes time, conscious effort and commitment (sounds like life, doesn’t it). Social media is a two-way conversation. It is continuous, long-term and steady. So, keeping it going requires attention, and yes, commitment. And, its success is based on trust.

Student

This is an interesting presentation. What good is a social media campaign if you don't get any customers out of it? Calculating ROI from social media still seems tricky to me. I don't see how you can attribute the achievement of goals to social media or some other form of marketing or advertising. Overall, the benefits of social media are obvious, it is just hard to explain these advantages in terms of monetary value.

I also think the part in the presentation about content is imperative. Of course, the supermodel will have a lot of friends but how do we get that many "likes" for a brand that isn't so... sexy? The answer is content. You have to do more than just have a facebook page. You need to know how to use it, connect with your audience, and earn some ROI.

Student

I find that being able to see a connection between social media and financial gain for a company to be one of the hardest things to understand. I know many people who have a social media internship which entitles them to tweet or post to a facebook page for a certain company here or there and they get to slap on their resume that they had this huge responsibility of single handedly running the social media end of the business they were associated with. Now as great as that sounds I have never had one of those people tell me what kind of difference they made. When being interviewed future employers want to here about one thing, results. If you can calculate what you did as a employee in an internship such as I described and them further explain how you specifically helped the company I feel that it sounds much more impressive. In order to do this you must be able to understand ROI.

Student

The presentation slide has actually made me think about social media ROI which I never cared about. For every business, especially in Advertising field, Return on Investment is a very critical fact that companies always should focus on. That's because they must be lost in the business unless they accurately keep an eye on ROI. The same as social media! It might be tricky to measure the traffic even though it might be seen easy with looking at Facebook likes and twitter retwits. Dollar value could be put in to make it easy to show the result for ROI and this will allows companies to succeed in online marketing by dealing with social media ROI.

Student

I worked on a project at one of my internships where they asked me to try and create a "formula" to report an ROI to a client that was working with bloggers. They flew out a bunch of influential bloggers to their headquarters and gave them the star treatment for the weekend. Afterward, I was to track and monitor what was going on in the blogosphere in regard to their company. It was very challenging to give a value to all of the different posts and comments. A comment couldn't just be counted as one impression, because some comments would be negative, some would be very involved and positive, and others would simply be "good post". Even still, some would just be the same person commenting over and over. Should that be counted as more than one impression, or just one since it's the same consumers you're reaching just in-depth? All of these factors (to name a few) make a social media "ROI formula" seem very intangible to me. 

Student

I agree that I think it important to keep content relevant and valuable. By having a strategy it allows a company to establish a goals and to outline steps in order to complete that goal. This gives the company an idea of what their intentions are by using social media and it will better allow them to be successful with their online marketing. It is not enough to simply be an online presence. It is important to interact and have a purpose and have all of the content have a purpose as well.

Student

I think the problem most businesses have is that they don't have any type of strategy when they start using social media. It kind of reminds me of traditional media impressions. Yes, a certain amount of people have the ability to be exposed to your messages via Facebook and Twitter, but that doesn't mean that they notice your updates in their feed. Facebook fans can be pretty dispensable if you don't create the appropriate measurement tools, build relationships, and write interesting content.

Student

I do agree that some companies don't have a marketing strategy.  They also don't have a focus on their pages. Some companies just have a page because other companies have a page. Lets say follow the leader! All companies need to inderstand what a consumer needs and wants to see on a website.

Derek Mehraban's picture
Instructor
3/27/2011
Facebook, Social Media