Social Media ROI - What does it mean?
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Even though advertising has changed, most marketing agencies are still clinging to old measures of success like Return on Investment. Vic Drabicky, a digital marketing and strategy consultant, argues that ROI needs to be updated to account for the new ways social networks drive sales.
The new model requires some more preparatory work as social media agencies need to test and decide how much to value other actions besides sales. A user signing up for an email listserv has some value, and the value varies from brand to brand and industry to industry. A FaceBook like is also worth some value. The social media agency then evaluates how many of those user responses are created for each dollar spent marketing a brand
Only once each of these call to actions has been measured for value can the social media agency offer up its true worth and ROI. This update is necessary. Clients are increasingly savvy to the new marketing tools available, and yet they are also increasingly weary of ambiguous metrics of success. The name social media agency implies something different than marketing agency and the measures of success need to update as well.
How do you feel social media ROI should be measured? What does it mean to you when you like a brand on Facebook, or follow them on Twitter? What is the best way for a brand to connect/build loyalty with you in Social Media?