Measuring the return on investment (ROI) of social media marketing activities has been a big challenge for marketers. A recent report from Social Media Examiner found that measuring ROI is still a difficulty for marketers, as only about a quarter say they’re able to do so.
Social Media Examiner’s “2013 Social Media Marketing Industry Report: How Marketers Are Using Social Media to Grow Their Businesses” found that 97 percent of the 3,025 respondents to a survey say they use social media marketing, up from 94 percent in 2012. The report also found that 86 percent of marketers say the social channel is important to their business, up from 83 percent last year.
But just because most marketers use social media and deem it important doesn’t mean they know how important it is to them. The survey asked respondents to rate their level of agreement with this statement: “I am able to measure the return on investment for my social media activities.”
Three percent of marketers strongly agreed with this statement, while 23 percent agreed. This means a total of just 26 percent of marketers say they’re able to measure the ROI for all their social media efforts.
Social Media Examiner shares that 87 percent of marketers want to know how to measure their ROI for social media activities. “This question has been top of mind for marketers for the last three years,” writes Michael A. Stelzner, founder of Social Media Examiner. “Clearly very few marketers have figured this one out.”
The subject of social media ROI can be a touchy one, and while there’s killer no one-size-fits-all formula, there are certain ways brands and marketers can approach the conundrum.
Some social media platforms offer build-in analytics tools. Then there are other helpers, like Facebook Offers and Google Analytics, according to Megan Marrs, blogger and copywriter at WordStream. She notes that social media is best at generating “soft” leads, or people who exchange their email address for something of value (e.g., a white paper, e-book, free samples).
Marrs adds that not all social media benefits can be measured. “As corny as it sounds, social media serves as a powerful tool for building relationships
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