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 ?”
According to a report from ANA “Marketers are rapidly learning what works best for their brands and they look to remain nimble and move to adopt new opportunities. Platforms offering the most tangible ROI will be favored by marketers moving forward. It is imperative for the industry to standardize measurement practices for digital, social and mobile markets.” Marketers are more concerned about metrics and measuring ROI than they were last year. However, senior managers are less concerned about using newer media – suggesting its acceptance – and anticipating results from these platforms.” That is good news but eventually at some time someone is going to ask the question “is our investment in social media worth it?”
Right now if you Google “social media ROI” you will get over 4.5 million results. Authors are getting rich writing books on social media marketing ROI and social media “experts” are getting more clients to help brands put a dollar sign for their social media marketing. After all the meetings and Power Point presentations what if marketers can’t really but a hard metric ROI for their social media marketing efforts ?
There is some research, available free from the Internet, which is excellent and some which is garbage with pictures of cartoon characters with pit helmets and magnifying glasses. Here are the major findings from Awareness on the State of Social Media Marketing which can be downloaded here. There are some great findings that are pretty much in line with what I believe and see to be going on within most companies.