As businesses move to embrace social media, they’ve encountered challenges. It’s been difficult to incorporate social media efforts into their established marketing processes and upper management wants proof of ROI. Analysts are now reporting preliminary ROI data for social media which may help justify this expense.
BzzAgent has been producing social media campaigns for large CPG companies for a few years now. And though they can’t release the names of these clients, the company points to positive results for its programs as measured by leading shops like Nielsen and Foresight ROI. Based on multiple years of data, analysts used Market Mix Modeling (MMM) to determine the ROI for social media. For companies in this study, each dollar invested in social media resulted in a $1.50 return.
While not every campaign may turn out with these exact numbers, BzzAgent says the study proves:
Social ROI Can Be Measured Accurately — There is no need for new measurement tools to be developed. On the BzzAgent blog, Brian Cavoli reminds marketers that "Social can be measured apples-to-apples with other media in the marketing mix."
Social is an Effective Sales Channel – Channel effectiveness can be improved when product attributes are promoted to the proper target audiences.
These results are certain to attract the attention of marketers who have been hesitant to invest further in social media.[Source: BzzAgent Validates Social Marketing ROI. BzzAgent.com. 23 Jan. 2012. Web. 1 Mar. 2012]