Saturday, May 12, 2012

Measuring the effect of Social Media marketing

I will be in Tallinn on Friday, 1st of June, when Socialfest 2012 is kicking off. People at Altex kindly asked me to talk about how to measure the effect of social media marketing on your business? This is fascinating but also very challenging topic, because first you have to define social media and then marketing. If you think you know what marketing is, read this great article: Marketing is dead says Saatchi & Saatchi CEO.

I so agree what Kevin Roberts is saying about return on investment. Let’s face it: return on investment is a big fraud. ROI in social media is even a bigger joke. Maybe the right KPI is return on involvement or return on ecosystem? You simply can't measure everything in euros.

Albert Einstein said: "Not everything that can be counted counts, and not everything that counts can be counted." This is so true, especially when it comes to social media marketing. However, your gut feeling or HIPPO (highest paid person's opinion) is not enough nowadays to get the resources needed. That’s why you need to measure social media marketing effects somehow.

As you know, with digital marketing you can get tons of data. Instead of reporting numbers, the most important thing is to know what matters and what is “nice to know”. Someone have to transform collected data into business insights for planning and decisions. That person is usually called an analyst. :)

Before analysis the crucial thing is to define your goals. There are numerous purposes in social media marketing that cannot be counted money wise. Please help me with my presentation and tell me how would you measure the effect of social media marketing on your business?