How to Measure Social Media ROI
Posted by Shannon Suetos on November 23, 2009 in Internet Marketing [ 0 Comments ]
Twitter, Facebook and Youtube are getting more and more popular by the minute. Twitter alone received just over 7 million unique visitors in the U.S. for the month. With this kind of growth, businesses are taking advantage and tweeting new updates for their company, building Facebook fan pages, and connecting through Youtube channels.
The question concerning many business owners’ minds now is, “how do we measure our ROI on these types of projects?” According to Don Bartholomew, in order to demonstrate ROI in social media it is necessary to link the results seen in social media with the relevant business processes they are addressing. This however, is easier said then done. It hasn’t been until recently that there were tools available to track these types of results.
Because online marketing is evolving fast, marketers have to adapt. TweeStats is a great tool if you wish to research Twitter trends and analyze them. This tool allows you to graph your tweets as well as other tweeters and determine a pattern of activity. This is useful for figuring out when people on Twitter are reading your tweets. If you can determine when people are more likely to click on your links, you can tweet at these times instead of tweeting at times when no one is going to see the information you are presenting.
Tacking the conversion rate of your tweet is important as well. TwitterFriends determines what they call a conversion quotient, which measures how effective your tweets are on Twitter by looking at how many @ replies you receive as well as re-tweets. The goal of Twitter for business owners should be to get as many @ replies (gains you exposure) and re-tweets (helps get your link/links exposed). Being able to measure how effective your tweets are working, should help you determine how well you are marketing your links, and hopefully will help your ROI.
Email Data Source has developed a tool that will allow marketers to measure Twitter’s impact on the traditional brand marketing perspectives of reach, frequency and effectiveness. From my gathering it seems similar to TwitterFriends in the sense it will help you understand what type of people are re-tweeting you, but explains it in a more traditional marketing way. This is a great tool for marketers who aren’t familiar with Twitter yet.
With these more effective tools, (and more are probably on the way) social media will eventually morph into another aspect of online marketing strategies just like pay per click campaigns and search engine optimization are becoming a norm in the online marketing world.