Marketing with Social Media and its ROI

ROI“ROI” – Return on Investment. A simple but most important word.

On average, large consumer companies (with an average of $15.6 billion in revenues) will spend close to $19 million on social media this year, according to results from a survey conducted by Tata Consulting Services (TCS). While that average figure is projected to rise to $24 million by 2015. Its a huge Investment, Right ? There has to be Return On Investment for such a big bugs.

All marketing efforts has their all measurements. When it comes to Social Media there isn’t any definite practice for measuring Return On Investment. “How to measure ROI in Social Media? ” ” Is social media really gives Return on Investment?” “Is the ROI in social media Negative or Positive?”  are few the biggest questions for the Brands and Marketers.

MEASUREGenerally while measuring ROI of any campaign on Social Media, marketers consider twitter followers, facebook fans, likes or retweets, growth of community, brand awareness, website footfall. But does it give accurate picture to measure ROI figures ??

Social media is very large and growing pool, developing day by day. Tata Consulting Services (TCS) did a global survey of 655 respondents from mostly $1 billion+ consumer companies in June and July 2013 on ROI of Social Media. The average revenue of respondents was $15.6 billion (median of $4.9 billion). Respondents came from 11 global industries.followings were the outlines of Report.

Return on Investment

  1. 18% of global respondents – from companies with average revenues of $15.6 billion – have measured social’s value and are seeing a negative ROI. That figure actually becomes more pronounced when factoring out the 44% of respondents who aren’t yet measuring social’s value.
  2. 56% of respondents have measured social’s value.
  • Roughly one-third of them said the ROI is negative.
  • Other two-thirds of respondents who have measured social’s ROI have found it to be positive.
  • Overall, a plurality 38% of respondents overall have measured social’s value and found it to have a positive ROI.

       3.   44% of respondents haven’t measured social’s value, although the vast majority of those (32% overall) do plan to measure it.

       4.   Separately in the TCS study, respondents were asked to rate the extent to which social media has improved company performance across 15 named criteria. On a            5-point scale, the largest impacts are seen for the following criteria:

  • “Increased consumer awareness – the number of consumers who receive our messages” (3.67);
  • “Increased brand affinity – the number of consumers who view our brand favorably, and their affinity toward” (3.61);
  • “Measured how consumers view our brand and products (i.e. consumer sentiment)” (3.58);
  • “Improved marketing campaigns” (3.54);
  • Understood important consumer trends” (3.5).

To sum up in simple language, We can say Social media is highly useful to market the product and services as well as to understand customers.

All the Positive signs of result for marketing any product in any media are useless unless it gives positive ROI. In the next article, we will try to cover other positive and negative corners of ROI of Social Media. What is your experience with social media? What do you think about it from the marketers or consumer prospective? Does it give positive ROI? Please let me know your opinion and experiences with ROI of Social Media in Comments.


Marketing Charts

Tata Consulting Services


One thought on “Marketing with Social Media and its ROI

Add yours


Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Create a free website or blog at

Up ↑

%d bloggers like this: