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Calculating and Justifying Social Media Marketing Return On Investment (ROI)
Transcript of Calculating and Justifying Social Media Marketing Return On Investment (ROI)
What is Social Media?
What is Social Media Marketing? (SMM)
What is Return on Investment? (ROI)
What is Marketing?
According to the American Marketing Association Board of Directors:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
(Approved July 2013)
WhatIs.com defines SMM as follows:
Social media marketing (SMM) is a form of Internet marketing that utilizes social networking websites as a marketing tool. The goal of SMM is to produce content that users will share with their social network to help a company increase brand exposure and broaden customer reach.
Technopedia.com defines social media marketing as follows:
Social media marketing (SMM) refers to techniques that target social networks and applications to spread brand awareness or promote particular products. Social media marketing campaigns usually center around:
Establishing a social media presence on major platforms
Creating shareable content and advertorials
Cultivating customer feedback throughout the campaign through surveys and contests
Social media marketing is perceived as a more targeted type of advertising and is therefore believed to be very effective in creating brand awareness.
WhatIs.com defines Social Media as follows:
Social media is the collective of online communications channels dedicated to community-based input, interaction, content-sharing and collaboration. Websites and applications dedicated to forums, microblogging, social networking , social bookmarking, social curation, and wikis are among the different types of social media.
Kathy M. Bell, MS
The return on investment formula is calculated by subtracting the cost from the total income and dividing it by the total cost.
Calculating (SMM) ROI
Justifying (SMM) ROI
Social Media Marketing Industry Report (2015)
The Marketing Research firm Gleanster, in its report entitled
How Top Performers Calculate ROI on Social Media Marketing
, offers four major categories of social media measurement. They are as follows:
the number of Twitter followers, the number of Facebook fans, blog subscribers, etc. on a periodic basis. Top performers overlay these metrics with content and messaging drop schedules to determine whether or not specific campaigns caused spikes in audience growth.
Tweets, Re-Tweets, Forward-to-a-Friend, Ratings, Endorsements, Mentions, and general positive or negative sentiment.
Influence is a measure of how social channels impact the perceptions and attitudes of a target audience.
Top Performers demonstrate two separate techniques for linking sales to social media initiatives.
1. Establish a baseline before engaging in social channels.
2. Apply some good old direct mail techniques to social media campaigns. Assign a unique offer code to a promotion or social media marketing campaign.
" Top Performers actually cited creating “viral worthy” and compelling content (94%) on social media as the most challenging aspect of social media marketing."