A common question often asked is what is the return on investment of social media. To which there is often a number of possible responses depending on who is asking.
Without trying to sound facetious, some of the many possible replies are:
- Whats the return on investment on a TV campaign?
- What's the return on investment of a mobile phone?
- What's the return on investment from a trade show?
- What's the return on investment from the Yellow Pages?
- What's your objectives? How are you measuring it?
Questions are Often Based on Fear
More often than not, questions based around return on investment are often based on fear. It is natural to fear things that are new or that we don't understand. Right now there are lots of marketers who don't understand the social media platform. That's okay. It takes time to learn.
I didn't understand television advertising when I started out. It took a while to understand TARPS (Target Audience Rating Points) let alone message psychology and brand positioning. And for a long time, I struggled to understand how effective the advertising we did really was. Turns out that I was not alone.
Right now there are still thousands of marketers struggling to understand how effective their advertising is.
They wonder why they don't see a corresponding uplift in sales and wonder if there message is working despite spending thousands of dollars on market research tracking studies.
Measurement is a Contentious Issue
The thing is, measurement has always been a contentious issue. Yet despite the issues of measuring TV ads, it hasn't stopped some big brands from spending millions of dollars on their campaigns.
I've seen a lot of TV campaigns fail to make a positive return on investment. But they have often positively impacted brand awareness. Part of it comes down to your objectives.
The critical issue surrounding return on investment is that most traditional forms of marketing is one way. Although the message might be engaging and entertaining, it may not necessarily engage the audience.
There is a Need to Engage Your Audience
Social media turns things upside down and offers marketers the opportunity to engage their audience and have a two way conversation with them. This is exciting. What a wonderful way to listen and find out and iron out any issues. We've found that most people are pretty forgiving if you listen to them and respond quickly.
The good news is that brands and businesses now have that chance.
Previously the conversation was happening - your brand or your business just wasn't privy to it. Being part of the conversation actually gives you more power. For the first time ever, you have the opportunity to be part of the conversation.
Of course, being a part of the conversation can be a fearful place for many. The biggest fear is what if someone posts something negative?
You Control How You Respond
Its quite possible it might happen. However, you get to control how you respond. You can take the message offline.
More often than not, negative messages are few and far between. And if you do get a lot of negative message, maybe that is signal to you that you need to improve your product or how you go about your business. It's an opportunity to improve your systems, products and processes and let your customers know you are serious about meeting their needs.
In this scenario, everyone is the winner. We think everyone should be a winner. Do you?
