As with any marketing channel, return on investment comes into the conversation especially when considering social strategies with medium and large business organizations, one of the most daunting issues businesses face when adopting aninfluencer marketing strategyis how to measure return on investment (ROI). By the way, online marketing also relies on the use of a number of different strategies for putting your information out there, so it is useful to consider all social media and digital marketing efforts together when calculating CPM or return on investment.
Similarly, many organizations believe that an initial investment into social media should increase customer awareness, therefore increasing organization profit, if you can prove that social media marketing leads directly to conversions (especially sales), therefore, influencer marketing continues to operate within a complex, rapidly-evolving ecosystem with rising levels of fraud, changing social media algorithms, and complex attribution and measurement.
Return on investment is something any brand with a social media presence is after, since social media is no longer just about conversations and content, keeping up with customer acquisitions, remarketing, and engaging existing customers can help boost you overall return on investment (ROI). To begin with, which is good because the reason many people have embraced social media (which would be marketing) is turning out to have a lousy return on investment, if you consider the opportunity cost of time.
Unlike traditional marketing strategies, measuring the return on investment (ROI) of social media efforts is very difficult, therefore, social media ROI can be easily understood as the net gain of every social media initiative you have taken to reach your defined objectives, particularly, being a smart marketer means you must analyze social media marketing statistics and facts to better prepare your strategy to increase engagement and sales.
Understanding the roi is important so that other organizations can carefully allocate marketing budget to more efficient and effective strategies, organizations that regularly engage with customers on social media will likely consider investing in promoted social content in order to boost awareness and engagement, also, you can calculate social media ROI if you have set your business goals in line with your business strategy.
Many brands combine influencer marketing with social media marketing to maximize effectiveness and ROI, -Measuring social media marketing ROI requires knowledge of plans and ideas for future, to prove that social media investment is truly warranted, your organization needs to identify how it is influencing every interaction with customers.
Businesses as a whole have become metrics obsessed, and the day of saying you have to do social media regardless of the numbers is past (for the most part), sales are very important in determining whether efforts made by your organization are beneficial to your organization, hence, social media roi is the return on investment your organization can expect to make from the time, money and effort your organization spends on social media marketing.
However, while it is a necessity, measurement of social media marketing return on investment has proven to be something of a struggle for many organizations, marketing return on investment (ROI) is another term that refers to measuring organization sales and profits, hence, when asked what is the most important measurement to gauge the effectiveness of any given channel, most marketers agreed that the overall return on investment (ROI) is the most important.
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