It seems that if 2009 was the year for experimenting with social media then 2010 looks like the year that companies decide to get serious. A recent study by Bazaarvoice surveyed 133 chief marketing officers. 64% of these are expecting to spend more on social media. However along with this increased spend comes an increased requirement for a good return on investment. 81% are expecting to be able to attribute 10% of their revenue on their social media investment.
Just looking at the excellent return on investment for companies like Dell and Ford show that there are good reasons to believe that social media will indeed be able to demonstrate such returns. Traditional advertising is certainly taking a hit this year with consumers seeming to become significantly less accepting of it as a medium. There has been a significant culture shift in the way we consume information and marketing practices need to adapt.
The results of the survey show a clear change amongst marketers in how they go about measuring return on investment in social media. Rather than focusing on web focused benchmarks like traffic or fans the respondants reported that they will be focusing on conversions and order value. In 2009 only 36% tracked the impact of their networks on conversions. Even less were looking at the actual impact of revenue.
Another interesting aspect of the survey was the reliance that the marketers are placing on user generated content. The respondants reported that 80% of them were already using customer insights to shape decision making at a high level and even more were using such data to shape their products and surveys. They report that the trend will be to continue collecting such data and increase its breadth. Many plan to start making more use of reviews and Twitter.
To me this data makes sense and it is exciting to see that companies are starting to invest real cash into social media marketing initiatives. It is only with such investment that the real measure of social media marketing can be taken.
If your company is one of the many who are starting to get serious about social media marketing then SociaLNK could help you.
