In this blog, we’ve focused on the ROI ((return on investment) of social media, which makes sense given it is a topic that continues to attract a lot of attention.
Once again, it’s time to look into the ROI of social media once , and see how it’s evolved and where perceptions lie.
ROI matters and to think social media provides little or no return on the investment is flat out wrong.
Much of what social media has changed in the advertising, marketing and communications landscape is evident every day. What isn’t evident is how social media has evolved the ROI.
ROI has historically been a very straightforward equation. What the bottom line is in regards to the amount you invest. Sounds simple, right?
Social media changed the game by proving the value of conversation, communication and eventually leveraging the power of your audience to have a positive affect on your bottom line. Sounds less simple now, right?
The ROI is there, and organizations who use social media properly feel a pronounced return. It’s how we perceive the return that needs to change.
Audience building, conversation, insight, and of course, profits is the return you will receive. The first three are what lead to the last one, and the return just takes a bit more time.
It’s a new return on investment with social media, but it still pays great dividends. Digital marketers need to be selling the new ROI to their organizations, and keeping expectations intact.
Most can’t make the connections on their own, because it is such a radical change. It exists but is just a different road to get from point A to point B.
The problem lies in the perception of social media for those who haven’t bought in. Maybe the recent activities of social networks going public have helped quell that negative perception somewhat.
If not, the onus is on the digital marketers or digital marketing teams to prove ROI and show how the data, insight and connection to your audience does matter and will affect the bottom line.