Social media spending to increase without ROI

realy?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.

Gigaom Research surveyed 300 U.S. digital marketers to understand how they are using digital-marketing tactics across the marketing funnel, spanning awareness, customer acquisition, conversion, and retention. Their survey affirms that digital marketing is being used consistently across the entire customer experience.

digital spending

Moreover, marketers are drawing comfortably on a broad palette of digital tactics depending on their objectives. Marketers told us that social media, already well-known as an awareness-building tool, is also particularly useful for customer retention. On the other hand, content marketing is especially useful for awareness and retention. And email is consistently used across the entire marketing funnel. Our survey analysis revealed other key findings, including:

  • Nearly 60 percent of companies plan to increase their digital-marketing spend in 2014.
  • Email marketing is the digital workhorse, deemed the most effective (relative to other digital tactics) for building awareness, acquisition, retention, and conversion. In fact, 56 percent of respondents identified email as being the most effective at retention, several points ahead of the second-most-effective tactic.
  • 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.
  • Referral marketing is a digital-marketing dark horse. Only 39 percent of marketers use it regularly, but 43 percent of those who do use it acquire more than 35 percent of their new customers with it. This is double the percentage of marketers who report such acquisition rates using email. Brands that invest in referral can gain a competitive advantage over those investing elsewhere.

Nowhere within this report, did I see a mention of usability testing or writing good content that users find useful.  It seems that for the majority of marketers surveyed in this report more digital is great but we don’t need to get it right.

smroi

 

About richmeyer

Rich is a passionate marketer who is able to quickly understand what turns a prospect into a customer. He challenges the status quo and always asks "what can we do better"? He knows how to take analytics and turn them into opportunities and he is a great communicator.

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