A recent global survey of how large companies use social media ROI metrics reveals a decidedly mixed picture.
In North America, nearly half of large business-to-consumer companies don’t measure social media ROI at all. In Europe, a 52% majority do not.
It’s only in Asia-Pacific and Latin America where ROI is a popular yardstick, and where a positive result is more common than not measuring it at all.
- 55% of companies based in Asia-Pacific said their businesses have realised positive returns on their investment in social media. Only one-third said they do not measure ROI, and only 13% say they see negative ROI.
- 41% of companies in Latin America reported positive returns on social media, while 28% said they do not measure it, and 31% reported negative ROI.
- In North America and Europe, more companies do not measure social media ROI than those that do. Although in both regions, companies measuring ROI tend to see a positive return.
These findings were based on Tata Consulting Services, which surveyed 655 representatives, mostly from consumer-focused companies with $US1 billion or more in revenue. The June and July 2013 survey was meant to discover how social media is being used in large businesses.
Some of the reasons a company would invest in social media, other than to drive quantifiable returns on investment, would be to:
- Increase consumer awareness and brand affinity
- Measure consumer sentiment
- Better understand consumer trends
My colleague John Heggestuen recently discussed social media ROI and how marketers are opting for more basic, no-frills metrics instead.
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