A report from The Incyte Group on social media marketing that states “U.S. marketers spent $3.08 billion on Facebook brand pages and social media advertisements and the investment return has been dismal” . The fact is, despite their reach, open social networks have not proven to be the most effective customer-acquisition or revenue-generation channels, and most businesses are still seeking to quantify the business value of their investments.
Social media is taking up a bigger portion of marketing budgets, but few companies said they have been able to quantitatively measure its impact. Despite the increasing investment in social media, it’s still difficult for marketers to quantify their return on investment. Only 15% of marketers in the study said they can show the impact of social media on their businesses using quantitative approaches, while 40% of marketers can only demonstrate the impact qualitatively. Nearly half of marketers said they haven’t been able to demonstrate the impact of social media spending on their business at all.
It is abundantly clear that there is a massive “digital divide” between consumers engaging in real-time across channels, versus the digital marketing industry that is still largely siloed and not executing in real-time. It appears that this digital divide is due, in large part, to two key challenges observed in this research, namely: Overwhelming Complexity and Lack of Unified Measurement.
More and more companies are adding people with titles like “Manager of consumer insights” or “customer insights specialist”. However too many of these positions are nothing more than a renaming of market research people and departments that still rely on old market research methodology to gain insights from consumers who, by the time the insights are analyzed and acted on, have moved on to competitors products. Consumer insights people have to be able to two things very well identify key insights but more importantly ensure the organization acts on those insights with speed and quality without weeks and months of meetings and Power Points.