Great article that puts some bite into the arguments for Social Media.
Word up to the Centre for Media Research.
Quantifying Social Media Advertising Contribution
by Jack Loechner
According to a new study by AOL platforms, social media has emerged as one of the most popular marketing tools to reach consumers, with companies like Twitter, Pinterest, Facebook, LinkedIn, YouTube and others vying for advertising dollars. As with other marketing channels, it has become vital for marketers to understand the absolute value of their investments in social channels, or change tactics accordingly, says the report.
Marketers intuitively know the power of social media and its virality, but they also want metrics that go beyond tracking clicks, likes and retweets. This includes more qualitative measurement to better explain the return on investment (ROI), such as how a specific social channel influenced a purchase online or in-store.
To understand how social media channels contribute to an advertiser’s efforts, the study leveraged Convertro’s multi-touch attribution technology to analyze all social media exposures that occurred in Q1 2014 across its entire client base. To reveal true user action, this report is based on real world, third party customer data rather than relying on survey data, which can be unreliable.
Key takeaways include:
- Social Media provides significant impact on a customer’s path to purchase and strongly influences their buying decisions.
- Paid social media advertising transforms the medium from an influencer tool into an effective upper and lower funnel solution that directly moves the needle on sales.
- Some social networks are more conducive to awareness vs. conversions.
- Social performance is not ubiquitous across all advertiser verticals, it varies by channel and product category.
News stories about advertisers increasing their spend on social have dominated many of the headlines recently, says the report. It also notes that eMarketer estimates that spending on social media ads will hit $6.6 billion in the US this year, growing more than 46% from 2013.
See the whole story here.