Actually, today I had a quiz about the return on investment (ROI) in accounting class. I have only learned how to calculate ROI in specific company with precise figure. However, it’s an old way to calculate the ROI. As changing the environment of company, CEO and other employers have to apply to different way for determining the ROI. This is the ROI for social media.
Because of the power of social media, it cannot be ignored any more the ROI for social media. Before people evaluated their products by Mouth to Mouth (M to M) but, in these dyas, many people find the information on the internet and trust it more than M to M. Emergence of social media generates a different consumer-behavior depended upon internet so it is really needed to adjust this change and measure the ROI for social media.
When the company evaluates the affectivity of social media such as how many people see the information and share it with others in their blogs or other sites, this figure has to be QUANTITATIVE. Whether social media is successful or unsuccessful relies on how many people read the information. The quantity of Links and Traffic is included in measuring the ROI for social media.
When the company evaluates the affectivity of social media such as how many people see the information and share it with others in their blogs or other sites, this figure has to be QUANTITATIVE. Whether social media is successful or unsuccessful relies on how many people read the information. The quantity of Links and Traffic is included in measuring the ROI for social media.
LinksAlso, the quantity of comments is another useful method to calculate the ROI.
After getting on the homepage of one of these sites you should see an
increased number of incoming links, which should lead to an increase in your
search traffic.
Traffic
Sites like Digg can drive thousands of visitors to a website within minutes which can be very valuable to website owners. Granted those visitors may not click on ads, but if you have something that perks their interest they may sign up for it.
The ROI for social media is more important than before, by changing the consumer-behavior, the result of what kinds of information have to be quantitative and measured for ROI. And now, such as the perspective of Jason Falls that “every session on measuring ROI in social media is a waste of time” is wrong and it’s time that many CEO have to consider the precise quantity in social media seriously.
Cited Site:
Photo Credits:
Posts
3 comments:
I agree with you MIN =) it is important for the company who runs the social media measure the ROI of it. So in the nearly future, it will be possible to find the efficient tool of investigating the media's ROI
Hi Min!
Interesting point of view!
But don't you think social media's impact is much more qualitative than it is quantitative?
If you measure the ROI of social media just with figures, links and traffic data, I feel like you are missing the most important part of it, which is for me, the bond you establish with your customers... and that should be priceless.
These are good points. I often forget about how simply starting a conversation around a brand is a great accomplishment. I think it's getting quite easy to do this with blogs and always-on social media.
Post a Comment