As marketers look for new ways to reach out to their target audience, many of them are turning to social media marketing. However, new research suggests that this remains a difficult tactic to measure in terms of return-on-investment.
Nielsen recently published its “Annual Marketing Report,” and statistics showed that over the next 12 months, the majority of marketers (more than 70%) said that they intend to increase their budget for social media. This was followed by search (approximately 70%) and online and mobile video (nearly 60%).
However, among those who said they were going to increase their budget for social media, more than 70% said they were “not very confident” in their ability to measure ROI, while just about 30% said they were “very confident.” This indicates that there is still work to do in this area before marketers can reap the benefits of initiatives in this area.
Revenue and Social Media Marketing
This is not the first batch of research to suggest that marketers have had problems in terms of measuring the impact of their work with social media. Previous data indicates that revenue is also difficult to attribute to this channel.
DemandLab conducted its “Revenue Attribution Outlook Survey,” and the statistics showed that out of all top digital channels, social media marketing (44%) is the most challenging to analyze in terms of how it contributes to sales revenue.
Content marketing (39%), display advertising (38%) and email marketing (33%) were also considered challenging. SEO (18%) topped the list of least difficult channels to analyze.