Two-thirds of the online population is active in social media, however, many brands are still uncertain concerning the real return on investment they can get from social media marketing. Major concerns include the rapid pace at which social media has taken off; and the equivocal, sometimes conflicting nature of results disclosed by research studies.
Nevertheless, the 2011 State of Digital Marketing Report revealed that more than 50% of companies closed leads via social media channels. It also disclosed that, whilst the bulk of digital marketing budgets are spent on PPC followed by SEO, most brands have increased their budgets for social media marketing for 2012. But what is the value of this relatively new medium? The list below briefly outlines why engaging with customers through social medial channels can drive improved revenue and/ or brand preference.
1. It increases visibility at a low cost
Buying advertising space on traditional channels such as print, television and radio is expensive, especially relative to the cost of setting up social media pages. Corporate websites are generally stagnant compared to blogs and social media pages. Social media pages, on the other hand, have the potential to generate multiple brand impressions at a very low cost.
2. Customer service is quicker and easier
Customer service teams can listen out for customer issues online, and resolve them. Starbucks takes this a step further by asking its online communities for suggestions on how to improve its business, and then discusses the ideas on the site where others can see. It’s generally good practice for companies’ social media staff to respond to tweets and wall posts.
3. It grows your online community
Increasing a brand’s Twitter following and Facebook fan base is the cornerstone of most social media marketing strategies. This is because it ensures sizeable audiences when the brand promotes new products, services and promotions. Unlike traditional marketing channels, social media generally allows for two-way conversations between the brand and its customers. What’s more, some social media pages are used as forums by loyal customers.
4. It increases organic search rankings
In general, if a brand has a large online community, this means higher levels of conversation about the brand. This gradually leads to more traffic to the brand’s site, more mentions and more links. The cumulative effect is that the brand’s organic search rankings gradually improve. For more information on R.O.I. Media’s social marketing services, click here.
5. It can increase your company’s trustworthiness and goodwill
In a study conducted by Ogilvy and Chat Threads in 2011, findings revealed that social content can change a brand’s image positively. This finding was coupled with a recommendation that brands should incorporate social content into their branding programs and track perception metrics. By doing this, PR managers can also get early warnings of potential PR disasters before they hit mainstream media.
6. It helps the brand to understand the target market better
Generally, the bigger a brand’s social media audience is, the higher the level of conversation. By listening first, a company can be better prepared to join online conversations and be more likeable to its audience.
7. The future is online
There’s already research which suggests that Generation Y (born between 1976 and 1995) is increasingly using social media to research products, find deals and evaluate peer reviews prior to making purchase decisions. The iGeneration (born after 1995) is predicted to be even more highly connected than past generations. Simply put, marketers need an online social presence, because that’s where there customers are and will be.
8. It increases the chances of going viral
Customers may like the content you post for various reasons. Perhaps it’s hilarious, unbelievable, deeply emotional, agrees with their worldview or makes them stop and think. Whatever the reason, social sharing buttons and embed codes prompt people to share content with their circles. Some campaigns even offer incentives for people to share.
Speak to anyone who works in marketing today, and they’ll very likely agree that social media is simply essential at this stage. Contact R.O.I. Media today and find out how we can apply our industry expertise to your expanding brand needs.
