The Power Of Social: Social Media And ROI
Next in the Power of Social blog series, we look at ROI. ROI, or Return on Investment, is important. Most businesses look for a return on investment on most of their spending. There are, however, exceptions. Training is one exception, as is human resources and, sometimes, social media.
You may think of all social media marketing activity as a flurry of tens of thousands of followers, hundreds of clicks to your site each day and comfortable sales. This is the case for some brands. Think of MyProtein, your favourite Food Porn-style eatery, a luxury hotel or ASOS, and yes, they probably do see a notable return on their social investment. Not all businesses, however, will see a return on their investment for social media – that’s the nature of the industry, and another thing that makes it a unique marketing outlet.
It was recently announced that American businesses who invest in social media spend an average of $4000-7000 per month. If a social manager is going to cost you around $3000 per month, and you want an effective amount of influencer engagement and paid campaigns, too, then these figures come as no surprise. One major hotel chain even outsourced their social media for £25,000 per month.
If you are MyProtein or ASOS, each £1000 spent on a social influencer probably will provide an ROI (although we can’t say for sure without inside figures). But in the less-commercial side of social media, you’re very unlikely to see a notable ROI as an investment firm, or a lawyer’s firm, who pays someone £30,000 per year to manage their social presence.
If so many businesses don’t see a ROI, then why bother?
If it’s unlikely so many businesses won’t see a good ROI, then why do they continue to invest in social media? Well, simply put, if you have no social presence (or a bad social presence), you’re putting your business at a massive disadvantage.
Social Media provides an opportunity to convey your brand to a targeted audience, improve your SEO, increase site traffic, improve outreach, establish your brand, and keep up with or overtake your competitors. These are just a few reasons Social Media is essential. Any good, modern marketing strategy will include it.
As mentioned, social is just one of a few ROI-lacking sectors, like HR or Training, which are still highly important.
Why does this show The Power of Social? Well, social media must be powerful and important if thousands of businesses invest a lot of money in a stream which, in reality, may not even provide a direct ROI. Don't just take our word for it: social-celebrity Gary Vee agrees, too.