5 Must know about social media marketing

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 growth, social media marketing has become more competitive and commercially-saturated. Organic reach is declining precipitously. And that means that there are some hard truths we need to accept about social media marketing.

what is social media marketing

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 calculating based on the number of visitors to his market and not the number of actual sales. In most cases, ROI is self-reported, so it’s hard to ensure you’re getting an accurate account.

2. Poor return on investment

Yes, it is true an average percent of 77 people use social media to advertise their business. why not?  but in this report, you would find out that only 48 percent of those investors get back a positive investment. There are many reasons for this discrepancy  – most of which may lye in this post.

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.

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