Proven ROI or Not, 72 Percent of Companies Have a Social Media Strategy
As much as companies tell their marketing departments they have to show a positive return on investment to justify spending on a new channel, most are still adding dollars to their social media strategies while only 29 percent of firms are requiring proof of ROI for continued funding. For that matter, ROI isn't being measured in the usual way.
So finds Salem, Mass.-based custom media provider King Fish Media in its survey, "Social Media Usage, Attitudes and Measurability: What Do Marketers Think?" HubSpot and Junta42 co-sponsored the research released in August.
Gordon Plutsky, director of marketing and research at King Fish, says the survey proves what his company has been saying all along: "Content is the key to creating an emotional connection. Social media has clearly emerged as a dynamic vehicle for delivering it to the right people in their preferred format."
Companies are using Facebook, LinkedIn and Twitter—with more and more adding videos on YouTube—to develop an audience for that content. Their objectives, according to the study, are to develop a dialogue with consumers in order to generate leads and develop closer relationships with their customers and prospects.
Plutsky explains more about how marketers are using social media:
Target Marketing: So 85 percent of respondents say original content is the most important contributor to a successful social media campaign. What kind of content is it? (Promotional? CRM? etc.) And what do they mean by success?
Gordon Plutsky: Our study showed that expert, original and branded content that delivers valuable information about an issue, product or industry works best in a social media campaign. It's important that the customer perceives value from the content—purely promotional content or puff pieces will not work over the long term. Metrics for success include identifying new customers and prospects, strengthening relationships with customers, increased sales of existing products and improved customer feedback.