Travel Industry Marketing Conversations

by the folks at ITI Marketing, Inc.

  • Find us!

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 10 other followers

  • Subscribe

  • Newest Twitter updates

    Error: Twitter did not respond. Please wait a few minutes and refresh this page.




  • Add Blog to the Marketing Blog Directory
    List your blog on the Internet's biggest and best Marketing Blog. The Marketing Blog is the premier source for the finding and posting marketing related blogs. Join for FREE!



  • TopOfBlogs

The Maturation of Social Media ROI

Posted by TeamITI on January 29, 2010

[tweetmeme source=”itimarketing”]

Brain Solis is a principal at new media agency Future Works, and author of the upcoming book, Engage. You can connect with him on Twitter or Facebook.

Lack of ROI standards

The debate over measuring social media investment inspired many brands to cannonball into popular social networks and join the proverbial conversation without a plan or strategic objectives defined. At the same time, the lack of ROI standards unnerved many executives, preventing any form of experimentation until their questions and concerns were addressed.

In 2010, we’re entering a new era of social media marketing — one based on information, rationalization, and resolve.

The Need for New Scrutiny

Business leaders simply need clarity in a time of abundant options and scarcity of experience. As many of us can attest, we report to executives who have no desire to measure intangible credos rooted in transparency and authenticity. In the end, they simply want to calculate the return on investment and associate social media programs with real-world business performance metrics.

Over the years, our exploration and experience has redefined the traditional metrics and created hybrid models that will prove critical to modern business practices and help companies effectively compete for the future.

Where the “I” in ROI represents investment, marketers have also explored ancillary elements to address the socialization of media, marketing, and the resulting dynamics of engagement.

In 2010, social media endeavors are often still thought of as “pilot programs,” launched to steer a brand toward perceived relevance. Budgets, for the most part, are borrowed from other divisions to fund the largely experimental programs. Where that money goes and comes from depends largely on the social media champions who push for this experimentation from the inside.

The business of social media

MarketingProfs recently published a study by Bazaarvoice and the CMO Club that revealed the true expectation of chief marketing officers. The bottom line: they want measurable results from social media.

The outcome of the study is more in-depth in the original article.

“I believe this is the direct result of a disconnection between social media activity and a clearly defined end game. We must establish what we want to measure before we engage. By doing so, we can answer the questions, “what is it that we want to change, improve, accomplish, incite, etc?” Brian Solis

However, 2010 is the year that social media graduates from experimentation to strategic implementation, with direct ties to specific measurable performance indicators.

Defining the “R” in ROI is where we need to focus, as it relates to our business goals and performance indicators specifically. Even though much of social media is free, we do know the cost of engagement as it relates to employees, time, equipment, and opportunity cost (what they’re not focusing on or accomplishing while engaging in social media). Tying those costs to the results will reveal a formula for assessing the “I” as investment.

When we truly grasp the ability to define action and measure it, we can expand the impact of new media beyond the profit and loss. We can adapt business processes, inspire ingenuity, and more effectively compete for the future.

Read the original article here.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: