If your business is not currently online, odds are one of your competitors is. Let’s face it, your business is here to make money, and social media is a numbers game.
With so many people joining the social media movement, it is becoming necessary for businesses to begin interacting online with current and prospective consumers. One of the main appeals of social media is that you can reach mass amounts of people with very little financial cost, but that does not mean social media is free. While many of the social sites do not charge for membership, they do take time to set up and manage, and as the saying goes: “Time is money.” So how do you know if joining the social media market is worth the time? Well, social media is a numbers game.
In a recent article, author Angel Djambazov discusses the importance of measuring ROI in social media campaigns. She points out that over the next four years, social media is expected to have the highest rate of growth in any marketing channel. However, recent studies have shown that despite its rapid growth, CMOs are having trouble grasping the exact impact of social media, with 15 percent believing there is no ROI associated with sites such as Twitter. Without being able to show how social media can lead to dollar signs, it is likely your social media campaign will not get off the ground.
Making sure your CMO understands the benefits of a social media strategy is crucial, and one of the best ways to do this is by showing the numbers. By understanding how ROI and ROAS (return on ad spend) work, you can spot costs and inefficiencies, identify opportunities you might be missing, and know which budgets to renew.