A fantastic article published by John Heggestuen in Business Insider reinforces the idea that Social Media Marketing isn’t always about the dollar value returns, but should be focused toward new metrics that evaluate social media strategies in terms of audience-building, brand awareness, and customer relations. It’s important to have clearly defined business objectives and realistic expectations before launching a social media strategy, and the points below really emphasize the larger picture of what marketers should be measuring.
The recent Business Insider report, In-Depth Research On What Matters In Digital reviews how social media strategies are involving:
- The decline of ROI metrics: Between 2010 and 2013, the percentage of marketers using a revenue-per-customer metric on social media dropped from 17% to 9%, according to the February 2013 CMO survey. The percentage tracking conversion rates also dropped, from 25% to 21%.
- Even as the vogue for ROI indicators fades, social media budgets are ballooning. On average, top marketers expect to devote 9% of their budgets to social media spend in 2014, and 16% by 2018, according to the same survey.
- Exceptions: Of course there are exceptions to the move away from ROI. Some social commerce applications and direct response campaigns will achieve measurable results on Facebook, or other social networks. And the end of the ROI-fever definitely doesn’t mean that all metrics can be thrown out the window.
- The metrics to watch are audience reach, engagement, and sentiment. On Facebook, it’s always important to remember that due to algorithmic filtering, brand or business posts will only be seen by an average 16% of their fans.
- Facebook shares are particularly valuable, because normal users’ posts are seen in a relatively high percentage of friends’ news feeds (compared to posts by brand pages); between 29 and 35% according to one study.
- Improving the most common metrics: Insights, Facebook’s built-in analytics tool, offers great basic data for measuring reach and engagement. We show you how to transform those numbers into richer and more valuable metrics.
- Post reach is the most fundamental indicator of reach on Facebook, but it’s important to track it relative to number of page fans and enrich it with complementary indicators. We show you how, and include screenshots.
The report also emphasizes the importance of reach and engagement as well as other benefits of social media below. It’s a great report to reinforce that in order to embrace social media you must see past the immediate revenue and dollar value returns, and see the larger picture!
Please leave a comment below, or tweet me @Marissapick with feedback, enjoy!