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12 November 2016

Is it really profitable Social Media Marketing for companies and brands?

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The complex task of measuring the ROI remains a challenge for brands.Although there are already companies that get to measure the return on investment, it is still a headache for many others. The study by Tata Consulting Services (TSC) includes data obtained by companies effectively measure their ROI.

Among its main conclusions it is that 44% of study participants TSC brand is not yet able to assess the impact of Social Media strategy, but so far this is one of their short-term goals.

Another important fact is that 56% of companies that do indeed know the return on investment in Social Media, approximately one third indicated that registered a negative ROI.

Among those companies that have been able to register positive results following its strategy of Social Media, include the following main benefits (rated on a scale of 1 to 5)

  • Increasing brand awareness (3.67). The companies have shown an increase in brand awareness following their actions on social networks. It is a means to increase the online presence so non-intrusive, growing interest by the target audience.
  • Promoting engagement with the mark (3.61). Another advantage is to foster a favorable attitude toward the brand, strengthen the link and thus, their affinity.
  • Measure the feeling of mark (3.58). It is not easy to know the opinion and the degree of customer loyalty to the brand. Social networks allow a more direct contact with the target, finding out first hand what they think about the brand, its products or its actions in Social Media.
  • Improve marketing campaigns (3.54). This approach allows to detect faults and errors in the orientation of the shares. Brands can detect in real time whether the campaign has had a positive reception among the public, or react in time and change the strategy if it has not.
  • Detect consumer trends (3.5). The social channels reflect the daily activity of consumers, their tastes, preferences and needs.Brands can track this activity and analyze it , thereby objection juicy details and industry trends.

The study was conducted on a sample of 655 companies, from 11 different sectors, with an average income in excess of 15 billion dollars. On average, these companies allocated approximately 19 million to its strategy of Social Media, an investment that could reach 24 million by 2015.

Social networking is still a channel in full swing, many companies have not mastered. However, it is important to study and know in depth, as they provide first-hand information on current events surrounding the target audience, and provide a new way to approach the target audience and gain their trust.