Reading this post it is most likely that you have heard that social media marketing has the power to take your business to the next level. Most marketers would tell you that there is a high return on investment (ROI) in online marketing.
In this evergreen world of
1. How do you define return on investment
Your fellow competitor might tell you that they are seeing a 200 percent ROI, that’s awkwardly high, but get this that ROI may not be from just one source or the organization might be
2. Poor return on investment
Yes, it is
3. Return on investment
depends on the social media channel
The strength of your social media campaign will be dependent on the strength of your efforts in other channels. For example, let’s say you have two companies essentially doing the same thing, Company A and Company B. Company A launches a social media campaign and starts paying $100 a week toward marketing. Company B spends $100 a week on traditional advertising and starts building an initial client base. After a few months, Company A has made some progress and is breaking even on its social media spend. Company B has a thriving customer base, so they decide to start a social media presence. By the end of the month, both companies have 1,000 followers. By this point, Company A has invested more than $1,000, but Company B has only invested $100—yet their posts are getting a similar amount of reach.
This example shows how the numbers can become skewed in favor of brands with big advertising budgets being spent on other marketing efforts, or those with an already-existing audience.
4. Difficult to get a positive return on investment
A positive social media marketing ROI is harder to earn today than it was a few years ago, in part because of an overall decline in the organic reach a brand can achieve on social media platforms. Social media apps have intentionally decreased the amount of visibility an organization or company page can get without paying, in part to ensure that mainstream users have a less commercial experience when browsing their newsfeed, and in part to drive more necessity for paid advertising.
5. Explosive growth requires a bit of luck
Just one piece of viral content can quickly scale your social media presence from “amateur” to “professional,” but the science on viral content is fairly limited. Even if you have all the “right” ingredients in place, there’s still an element of luck to your success. A competing piece of content might see 10 times as many shares as yours just because it was timed differently, or because the right person happened to see it first.