Does Social Media Give Good Return On Investment (ROI)?

I was recently at a client’s place replacing their dying hard drive and got into a discussion about what she actually does. She is an editor/writer for a business/tech annual magazine (actually, it’s hardly a magazine because it’s about as thick as the white pages) that aggregates statistics and articles from the entire year of all business and tech trends. This, of course, was right up my alley and as I was perusing through her draft we got into the discussion of what I do at Make It Work Web and Social Media Marketing Services Division. It seems that Social Media is really starting to develop into an EXTREMELY viable marketing strategy.

Consequently, because I saved all her data and her computer, she was generous enough to provide me with some really interesting stats prior to this year’s release of the magazine. I even got permission from her to blog about it! I love our MIW clients…they are the BEST! So here is the excerpt…read and enjoy!

Clearly, social media is not a fad: but rather,  a paradigm shift in how successful businesses market themselves.  According to advertising heavyweight, Alex Bogusky, “You can’t buy attention anymore.  Having a huge budget doesn’t mean anything in social media…The old media paradigm was PAY to play.  Now you get back [with social media] what you authentically put in.”  And the evidence is building that social media offers a truly impressive return on investment, especially compared to traditional media.  A few examples compiled by social media expert, Erik Qualman, underscore the potential return on investment:

  • Wetpaint/Altimeter Study found companies that are both deeply and widely engaged in social media significantly surpass their peers in both revenues and profits.  The study also found the company sales with the highest levels of social media activity grew on average by +18%, while those companies with the least amount of social activity saw their sales decline -6%
  • BlendTec increased its sales 5X by running the often humorous “Will it Blend” videos on YouTube blending everything from an iPhone to a sneaker.
  • Dell sold $3,000,000 worth of computers on Twitter
  • By giving away 100 Ford Fiestas to influential bloggers, 37% of Generation Y was aware of the Ford Fiesta before its launch in the United States.
  • Software company reports that 24% of its social media leads convert to sales opportunities
  • Web host provide Moonfruit more than recouped its $15,000 social media investment as their Website Traffic soared +300% while correspondingly sales increased +20%

Looking ahead, smart marketers of both large and small businesses are investing their limited resources in social marketing, and reaping an unprecedented return, forging the future of marketing promotion.

If that doesn’t excite everyone out there, then I don’t know what will.  Glad I’m neck deep in that whole mess we call Social Media. 😉

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