Taking the 3C approach to networks, we measure community, commitment, and conversion. In other words, we measure brand recognition, developing relationships with the audience, and generating sales leads. Before any analysis of return on investment we must take consideration three ideas:
The objectives of advertising campaigns in social networks are achieved in the medium and long-term, while social benefits as an engagement level depend entirely on the approach, planning, and development of a successful strategy.
Audience segmentation is vital to improving return on investment
We can "pivot" each time the investment is not yielding the expected results
Some of the ways of measuring return on social media investment include:
1) Likes and Followers: Determine Engagement
The simplest way to calculate ROI in social networks is to measure the number of followers on Twitter, likes on Facebook or any other audience on the other social networks where your brand is present.
A simple spreadsheet can help you control the growth in the number of followers and fans. This way you can identify trends and check the success of your campaigns. With these figures, you can also calculate the conversions generated during a particular campaign (number of followers on Twitter, likes on Facebook, etc.). You can present this data to your superior, thus justifying the investment in the campaigns, since this has contributed a certain number of additional followers to your channels. Measuring interaction through, for example, shares and retweets are key to being able to justify the success of your actions.
There are simple tools like Facebook Insights and Twitter Analytics that monitor the success of each of your publications on these platforms. This can help you determine what type of content is the most interesting to your audience (Daniel and Novak, 2013). If you want to measure the impact of a particular keyword, hashtag or theme, there are numerous tools like Brandwatch, GroSocial, and Keyhole, which help you to monitor social networks. These platforms analyze trends on Facebook, Twitter and other social networks and websites (Edwin, 2013). While these data are interesting and easy to measure, you should not rely solely on them to calculate your ROI on social networks.
2) Understand the ratio of clicks (CTR) and impressions
The click ratio is one of the most popular ways to measure the success of an online advertising campaign. The proportion or volume of clicks is a key piece in checking the visibility of a brand in social networks. This metric shows the percentage of users who have clicked on a particular ad in relation to all who have potentially seen it.
Translating this concept to a formula, the result would be:
Click-Through Rate (CTR) = No of Clicks No of Impressions
Virtually all social media platforms provide this data through their advertising analysis section. Download these metrics and compare them with those of other social networks. If you have not yet entered the realm of paid ads, simply use Google Analytics to monitor the click-through rate of other pages
3) Measuring influence
Measuring influence on social networks can be a challenging task and has become a topic of debate for much of the industry. It is not easy to give a number to the influence of your brand, but there are tools that have tried to do so. Klout, Social Authority and Brandwatch are some options for measuring the impact of a brand in the industry (Edwin, 2013). Analyzing the interaction of our audience in social networks could also help us determine our influence, but it is still an imperfect art. Before relying on a tool like Klout to measure your impact, make sure you understand how Klout scores work.
To calculate the ROI of social networks, another important metric while difficult to monitor the feeling, which represents the overall tone of the conversations around a company, brand or product. Measuring the feeling manually is a meticulous task, but not impossible. Tools like HootSuite, Klout, Buffer and Social Flow allow us to connect several social networks to know what is happening in each channel from a single centralized panel. The platforms that monitor the feeling automatically are gaining popularity constantly (Daniel and Novak, 2013). There are excellent tools that include this technology like Brandwatch and Social Mention, among others. The beauty of these tools is that they also allow you to monitor which specific users have posted something about your brand in addition to the general feeling about your brand or product.
Daniel.L. Hoffman and T.P. Novak, (2013). Social Media Strategy, in Handbook on
Marketing Strategy, ed. V. Shankar and G.S. Carpenter (Northampton, Massachusetts: Edward Elgar Publishing, in press)
Luck Littman, J. Nagy and N. Wortman, (2012) Advertising on Social Networks Drives In-
Store Sales, Retrieved from, www.thearf.org.
Edwin. York (2010), Kellogg Says ROI on Digital Trounces TV by Factor of 2 Advertising
Age, Sept. 6, 2010.
If you are the original author of this essay and no longer wish to have it published on the collegeessaywriter.net website, please click below to request its removal:
- Marketing Essay Example: Promoting Customer Relationships. Social Media Marketing.
- Essay Example: Marketing to Children as a Social Problem and the Solution to It
- Creative Writing on Management: Organizational Innovation
- Marketing Essay Example: Critical Stage in the New Product Development Process
- Case Study of the Body Shop Company and the Use of Social Media in Marketing
- Overcoming the Competitors with Lower Price - Marketing Case Study Example
- Questions and Answers on Online Shopping - Paper Example