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| Social Media ROI - Marketing Statistics |
Marketing Statistics
Glad
you could join me in this part 2 series. Hoping that part 1, proved valuable. I would like to hear from you on that. Today, lets look at some other ROI model.
Do
you know that most organizations socialize their operations solely for
marketing purposes? This happens to be the most important part of any social
media program: thus the famous social media marketing discipline.
Then,
what should you be on the lookout for? In as far as marketing statistics go
brands should measure:
- Reach and awareness
- Marketing equivalency
Reach and awareness
Find
any social media strategy and you are bound to find, increasing brand awareness
neatly written down as a goal. Brands (all) want prospective customers to know
they exist. And not only that, but their ability to solve their (customers)
day-to-day challenges. It is believed that the more people get to see or hear
something about your brand, the more the likelihood of them seeking your
brand’s services/products when a need strikes.
In
the social realm, reach refers to the number of people who have seen your post. And just so you know content is what drives social media reach. Facebook’s algorithm takes your content
and feeds it into your fans/followers newsfeed. The quality and freshness of
your content determines if it will be seen or disappear into the content abyss.
Assuming
that all factors are kept constant, then the total number of people who see
your post, equals your social media reach.
This
metric is categorised into paid and organic. According to Facebook, organic reach is the total number of unique people who were
shown your post through unpaid distribution. Paid reach on the other hand is
the total number of unique people who were shown your post because of ads. This
implies that when you feel your content or page is not getting the desirable
organic reach you set out for: you can always go the paid way.
Unfortunately,
a study from Social@ogilvy explained how we are fast approaching the end of
organic reach. And, true to their prediction: today before your content gains
the traction it needs, you have to really…really offer value in every piece of
content. Good news, you have a reason to explain your spend: paid reach.
Be
careful not to lose out. Yes, you can get all the reach you want and in return
awareness. But will you be pushing the brand goals forward? If you pair reach with
key goals such as lead generation, you add value to the whole metric. Thus, reach
in themselves do not count for much.
Marketing Equivalency
According to Liveworld, ‘Marketing
equivalency ROI should reveal how social media costs compare to those of other
media, ideally demonstrating that social achieves its goals more efficiently than
other spend.’
In his
book, Social Media Handbook, Peter explains how we can determine marketing
equivalency. Simply measure your social reach and ask yourself how much money
you would spend to reach the same number of people using traditional media.
Consider
this: suppose a social media program runs 300,000 to reach 1 million people
with 60 million impressions. You might calculate that it would cost 4 million
to get the same results through advertising.
This is
the value of calculating this equivalency. Once you calculate a campaign’s
marketing equivalency ROI, you can go to your CEO and say, “Instead of spending
4 million on traditional marketing on that campaign, let’s spend 300,000 doing
it through social channels, save a few million, and increase our overall social
media budget!”
At the
end of the day, companies are looking to save costs but achieve the same
results. If you can prove value through minimal spend then what will prevent
the management from giving you all the backing you need?
Brands
spend a fortune on ads that might just not be as effective as social media
programs. In addition, as all marketing objectives aim to drive more business,
then why not be on the lookout for this metric.
What is
your biggest challenge in as far as marketing statistics are concerned?
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