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Measuring Social Media

02/10/2011

Social media has gained favor  among marketers and advertisers. As the stakes get higher, and more resources are directed at this channel, measuring performance of social media is increasingly important.

eMarketer Digital Intelligence estimates four out of five US businesses with at least 100 employees will be marketing on social media this year, and US ad spending on social networks is expected to reach over $3 billion. And according to research from Bazaarvoice and The CMO Club, marketers are planning to change the way they measure the effectiveness of those dollars.

Site traffic, the top metric for social marketing success in 2010, remains the primary measurement. In 2011 more marketers will measure success with conversions than by tallying fans and followers, positive buzz and a variety of other “soft” metrics. Revenues will see a similar surge in interest.

Most companies are yet to establish ROI’s for their marketing beyond existing websites and email marketing. However if $3 billion will be spent on social media this year – measurement is imperative. $3 billion is a lot of dust.

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2 Comments leave one →
  1. 02/10/2011 10:33 am

    That’s a whole lot of ‘Don’t know’ for the money.

    • 02/10/2011 11:00 am

      Agreed! This reminds me of dot com days. I was in a board meeting with principals from Benchmark Capital and TCV Partners who said the only metric we needed to be concerned with was “eyeballs”. Being “old school” I asked about sales or conversions. The response – that will follow…just get the eyeballs. Six months later both VC’s were hounding us about conversion metrics and sales revenue.

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