How to Estimate Your Social Media Return on Investment

social media how toAre you wondering how to determine the return on your social media activities? If so, look no further.

In my prior Social Media Examiner article about Social Media return on investment (ROI), I discussed the financial definition of social media ROI.

This article goes a step deeper by working through a few examples of estimating the social media ROI.

Why Estimate a Return?

Before we go any further, let’s review why we need the social media return and ROI again.

You use the return and the ROI to compare the efficiency of marketing campaigns; for an in-house team, you can use these numbers to negotiate budgets with your management; for agencies, you can use estimated numbers to land prospective clients and to retain current clients. The numbers are used in conjunction with social and web metrics to analyze and optimize current and future campaigns.

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How to Measure the Return on Social Media Contests

social media how toHave you thought about running a social media contest? Wondering how to best measure your return on investment (ROI)?

This article will help with three case studies.

But first, about that ROI… It took some time after the advent of online advertising before marketers started asking, “What are these ‘eyeballs’ worth that I’m paying for?”

With social media, the tough questions around metrics started being asked much sooner. As marketing budgets stay tight, it’s no surprise that the need to show results is high.

So when it comes to contests on the social web, how do we go about evaluating ROI?

Investing in Your Social Media Contest

Before you can demonstrate a return, you must first make an investment!

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A Simple Way to Calculate Social Media Return on Investment

social media how toSocial media return on investment (ROI) is simply a measurement of efficiency. It’s a lot of things to a lot of people: “return on inactivity,” “return on innovation” and “return on engagement.”

However, in a stricter sense, social media ROI is defined as a measure of the efficiency of a social media marketing campaign. This definition might sound complicated, but in reality, it’s quite simple.

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Should You Use Radian6 for Social Media Monitoring?

social media toolsAre you befuddled by all the social media tools out there? Are you wondering if Radian6 is a good choice for your organization? Do you need a way to compare different vendors? Keep reading for a comprehensive review…

If you’re looking for a social media monitoring tool, you’ve probably noticed that it’s quickly becoming a confusing landscape. For those who are new to social media and looking for tools to manage their presence, it’s difficult to know how to compare one vendor to the next. Here’s the skinny on where Radian6 fits into the picture.

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30 Social Media Predictions From 30 Social Media Pros

social media viewpointsHow will social media impact marketers and businesses in 2011? We sought expert opinions from a wide range of pros you’re likely familiar with.

Since we started Social Media Examiner in October 2009, we’ve published more than 280 articles. These original posts were written by dozens of social media professionals.

We decided to tap their knowledge and expertise to see what’s likely coming next year. Here are their predictions for where social media is headed in the next 12 months.

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8 Social Media Metrics You Should Be Measuring

social media how toDo you think social media measurement is only about return on investment (ROI)?

Are you struggling to find measurements that are meaningful to your organization? Do you feel like you’re searching for a needle in a haystack of metrics?

Here are 8 useful metrics that you may not be measuring, but should be.

#1: Conversion Rates

Everyone wants to measure the volume of leads generated to get to the bottom-line ROI of social media efforts. But don’t forget about the value of the conversion rate! While the volume may not be there yet, the propensity to convert may be staring you right in the face.

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How to Measure Social Media Return on Investment for the Complex Sale

social media how toAre you trying to figure out how social media is impacting your bottom line? Are you already measuring but not seeing the results you had hoped for?

One of the reasons measuring the return on investment (ROI) of social media has sparked so many discussions is because it’s not easy. The main barrier to end-to-end measurement is the lack of a true social customer relationship management (CRM) solution.

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Top 6 Social Media Mistakes And How to Fix Them

social media how toWhile there are many success stories of people using social media for personal and business reasons, there are also plenty of people who may feel their efforts are not paying off.

Whether you use social media to market your business, increase sales, promote your blog, or raise awareness for a non-profit organization, here are six reasons social media might not be working for you—along with ways to overcome these problems.

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How to Measure Social Media Marketing Performance

social media how toEarly efforts in social media marketing have created a tremendous amount of buzz and interest, but surprisingly few case studies focus on monetization.

A recent study by Ketchum and Nielsen shows the number-one activity of social media users (online or offline) is reading blogs – even above TV!

So it’s clear that social media is here to stay, and accountable programs must be created to deliver performance and ROI. Here are 3 steps to help you get started:

#1: Define Key Performance Indicators (KPIs) and Measure Against Them

In order to hold any marketing channel accountable, there first must be a framework of metrics that can be tracked, compared to a benchmark (industry or prior program performance) and analyzed over time.  Social channels are no different.  When looking to assign accountability to social programs, the first step is to define KPIs and measure against them.  The three key components to track are:

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