How many articles do we have to read about social media marketing ROI before marketers realize that you can’t measure the ROI on every conversation? The truth is that many marketers have to justify their budgets because company executives are used to cutting “expenses” to improve bottom line results and because too many agency people and “experts” have over sold social media as a golden path to increased sales.
According to “Work horses and dark horses: digital tactics for customer acquisition” social spending is set to increase, but we discern some buying on faith with social. More marketers plan to spend more on social media marketing than any other digital tactic. But when we asked marketers to describe their perceptions of social media marketing, more marketers agreed with the statement “It is difficult to prove ROI for social media marketing” than with any other statement. Stupid is as stupid does.
Marketing can be downright self-indulgent. Too many marketers are still caught in the “business of marketing” and by that I mean that they love the eye candy too much and the press releases that mention their names so they can add a nice line item on their resumes. According to Sean Duffy “CEOs need to hire competent CMOs. These CMOs need to be able to explain their approach to marketing, be held accountable to marketing objectives and be able to show a result for their investments.” I could not agree more.
Does it ever stop ? The never ending chase of marketers to prove ROI for everything they do is draining the life out of marketing and wasting time and money. If marketers spent 50% of the their time on understanding what makes a consumer a customer rather than trying to prove ROI they would be a hell of lot more successful. It seems, however, that management wants to understand why marketers are spending so much money and that every dollar they spend is driving ROI. A lot of executives know the cost of everything but the value of nothing.
POST SUMMARY: Fully 92% of Americans ignore at least one type of ad, including: Online – 82% Television – 37% Radio – 36% Newspaper – 35%. The online ads Americans are most likely to ignore included: online banner ads (73%), followed by social media ads (62%), and search engine ads (59%). The highest wage earners, those with a household income of $100k+ per year, were statistically more likely than those households making less than $50k per year (86% vs. 78%, respectively) to say they ignore online ads.
McKinsey: ￼￼￼￼￼￼￼￼￼￼￼￼It’s a postholiday tradition up there with returning unwanted gifts and vowing to exercise more: spending a few hours cleaning out your e-mail inbox. If you’re wondering why marketers seem intent on e-mailing you more and more, there’s a simple explanation: it works. E-mail remains a significantly more effective way to acquire customers than social media—nearly 40 times that of Facebook and Twitter combined. That’s because 91 percent of all US consumers still use e-mail daily, and the rate at which e-mails prompt purchases is not only estimated to be at least three times that of social media, but the average order value is also 17 percent higher.
The hardest thing for any marketer to do is to directly tie their marketing back to turning a consumers into a customer. Countless hours are spend by marketers researching ROI and presenting results to executives but I would argue that those hours could be better utilized in understanding your audience rather than trying to prove that you are improving the balance sheet. I would further argue that all marketing programs working together (integration) are greater than the parts of any one marketing program.
What is the role of social media marketing in an era when 76% of people believe advertising is exaggerated ? Booz and Company believes “that companies must combine digital marketing efforts with traditional approaches, making the sum greater than the parts” but the recent research suggests that marketers are taking money from other tactics, including digital marketing, and allocating more to social media marketing. So let’s take a step back and ask “what is the role of social media marketing for ROI ?”