digital pr guidebook • Vol.
prnewsonline.comChapter 4: Social Media Measurement
n today’s challenging economic andbusiness environment, every market-er understands the need to demon-strate return on investment (ROI) ormarketing investments as well as the clearneed to deliver short-term results as wellas long-term benet or the brand. At thesame time, nance chies charged to deliver-ing improved operating margins to the or-ganization’s nancial community continueto look or cost eciencies and cost-benetrelationships in their organizations. As a re-sult, more and more CEOs and CFOs aredemanding quantiable ROI beore allocat-ing and approving marketing budgets.
Many marketers use both traditional me-dia and, increasingly, social media in theiroverall marketing mix calculations as a wayto understand ROI. However, accuratelymeasuring the results o individual socialmedia tactics or programs through market-ing mix modeling remains challenging orseveral reasons:Marketing mix calculations get less
accurate outside o broad strokes, andmany social media eorts are laser-o-cused or don’t have access to the levelo data that other channels do, mak-ing or a bad mathematical t.Social media value or ROI maniests
itsel in a range o ways—brand build-ing, crisis mitigation, advocacy—thatare very dicult to capture inside amarketing mix calculation.Traditional ROI models that ocus on
number o impressions to quantiymarketing investments simply don’twork with social media, as impres-sion counts on most social media cam-paigns are rough estimates at best.With the advent o social media, we needto view ROI in a dierent way where thequality o a social media program is mea-sured through valuation o various types o consumer engagement. Measurement mustbe based around such things as consumerattitudes, belies and behaviors; commentson Web sites and blogs; and participationon social networks. We then assign an esti-mated value or each o those actions andthe cascading value they can create to devel-op a measurement program that representsreal and eective consumer engagement.So why is measurement o ROI throughconsumer engagement more relevant thanmore traditional means? Simply put, con-sumers by way o their engagement controlsocial media as well as its ongoing word-o-mouth support, validation and amplica-tion. Earned social media is the most trans-
Measuring Social Media ROIFrom a CFO’s Point o View
Someone who is ollowedby only 10 highly infuentialpeople can oer ar more value than somebody who isollowed by an audience othousands who arenot ollowed.
By Anthony Viceroy