By Emily Tan, Campaign India:
The three myths:
- That social media ROI centres around measuring likes and followers
- That it is the same for social media as it is for traditional media
- That it can be measured independently of other media executions.
Myth 1: Measuring likes and followers equals ROI
Marketers who believe that ROI can be measured this easily are embarking on “quantitative fiction”, Carl said. “The reality is you have to focus on business goals when measuring ROI. Does it increase revenue? Will it deflect costs?”
For example, adidas held a social media contest in conjunction with the launch of a new football boot with the goal of driving brand preference. The contest, which got fans to form two online football teams complete with badges and avatars, managed to drive page views through the roof. “Because 70 per cent of traffic came from peer recommendations, adidas was able to decrease the cost of reaching its consumers from US$1.87 per consumer (poor traditional media) to 40 cents,” said Carl.
Or in the case of Microsoft, the ROI it gained from its online support advocacy programme was to deflect the cost of customer support from 68 cents per customer to 24 cents… Read more