Social media marketing with highest ROI
Social business and social media marketing sees an increased focus by CMO’s around the world. North American study suggest which social media channel provides the highest Return on Marketing Investment.
Social business becomes an integrated part of how CMO’s conduct their business. But does it pay? Does the social media channels provide a better ROI than the alternatives. The survey conducted by CMO Club and Bazzarvoice suggests that marketers are seeing some ROI in social media.
We are not sure that these numbers are representative as the survey sample (as usual) was rather insignificant, however it does provide indication. But the real question is; are you currently measuring your Marketing ROI from your social media marketing activities?
Here is a summary of the report findings to support the graph you see on this page
- CMOs move towards social insight and customer-centricity – The 2011 Survey points to a big shift in the power of social media and user-generated content, as brands begin to organize these voices into strong insights that serve as the launch pad for innovation and business change. In 2011, 93% of CMOs plan on using some form of user-generated content to inform product and service decisions. Top forms of user-generated content used in 2010 include customer stories (59%), product suggestions or ideas (54%), polling (49%), and customer reviews (47%).
- Linking company revenue to social media is the next frontier – CMOs were optimistic about tracking ROI for social in 2010 — 81% of those who participated in the 2010 Survey said they planned to track social media to revenues in 2010. However, standard ROI metrics proved difficult to measure for many social efforts; only 40% of CMOs surveyed in 2011 successfully tracked ROI on their social initiatives. Still, measurability remains a top executive priority, with sales conversion and revenue attribution standing out as the #1 and #2 growth opportunities in social measurement.
- Product ratings and reviews remain one of the best understood tools with proven ROI – The 2011 Survey indicates that many CMOs still use social media tools without clear insight into the ROI that tool is delivering. More than half of CMOS still don’t know or don’t see ROI across many social media tools, in particular Facebook, LinkedIn, and Twitter. Bright spots include product ratings and reviews (59% see average or significant ROI); company / brand communities (56%); and company or brand blogs (48%).
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Artwork from Infographic by http://www.mdgadvertising.com