Thursday, October 22, 2009

3 Reasons it's Tough to Measure the ROI of Social Media

Social media marketing is a hot topic, with 75% of marketers planning to initiate or increase social media use next year. With larger budgets and more time devoted to social media will come increased pressure to demonstrate ROI.

While it's not necessarily difficult to show an ROI from social media, accurately measuring the return on investment is challenging for at least three reasons. First is the problem of "last click attribution." A recent study found a 50% CTR increase in paid search when consumers were exposed to both social media and paid search for a brand, but if the actual click comes from AdWords, good luck convincing your executives that social media efforts led to that click. Similarly, a click-through from Twitter or Facebook may have been influenced by any variety of other online and offline marketing efforts, so giving 100% credit to social media for lead may be overstating the case.

For the complete story, read Three Challenges in Measuring B2B Social Media ROI on the B2B Online Marketing blog.


Contact Tom Pick: tomATwebmarketcentralDOTcom


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