How important is measuring social media ROI?
It’s an interesting question given a recent survey by Ifbyphone suggested only 26% of marketers believe they can effectively measure the ROI of social media marketing. This compares with 47% for email marketing, 40% for direct mail and 41% for online ads.
Despite the difficulty in measuring social media ROI, the amount of advertising is expected to quadruple to $8.3-billion in 2015 from $2.1-billion in 2011.
It suggests marketers need better tools and approaches to measure ROI, and/or that ROI isn’t an important priority given the social media’s strong growth and the pressure to have a strong presence, regardless of whether the spending actually makes sense.
While ROI is an important and necessary way for companies to measure the effectiveness of their marketing investments, there are questions about how to do given there are hard and soft metrics.
You do have to wonder whether there will be a point soon when marketers get more obsessed with social media ROI.
How much spending will they have to do before the CFO turns to the CMO and asks, “So, what’s the ROI on social media marketing versus the other things we are doing?”.