The document discusses measuring social media return on investment (ROI). It notes that over 50% of companies are unsure about their ROI from platforms like Twitter and LinkedIn. While social media is often seen as free, it actually requires investments of technology, employees, and time. The document examines different social media ROI metrics around exposure, engagement, and measuring the value of actions. It concludes that social media metrics must be tied to business goals and that relating costs like employee time to results can reveal a formula for assessing investment.

1. Enough with
the Social Media buzz
Give me the results
A Preliminary study on Issues and Challenges faced in
Measurement of Social Media Return on Investment
Khushbu Pandya
Department of
Management, Sumandeep
Vidyapeeth
At & Po. Piparia. Tal. Waghodia. Dist.
Vadodara – 391 760 Gujarat

2. Introduction
• Social Media needs to be measured to know whether it is serving benefits to
an organization or not.
• It was found in a study published by MarketingProfs (2009), that 53% are
unsure about their return on Twitter, 50% are unable to assess the value of
LinkedIn or industry blogs. Most importantly, about 15% believe there is no
ROI associated with Twitter, and just over 10% cannot glean ROI from
LinkedIn or Facebook.

3. SOCIAL MEDIA IS NOT FREE.
It takes Technology
It takes People
It takes Time

4. Social Media ROI
• As SM involves valuable resources like time,
people and technology, which is not at all free,
one needs to calculate the ROI for the same.
• There are certain Social Media ROI Metrics,
which are different from traditional business
metrics.
• So what are the RIGHT Metrics ???

5. SM ROI Metrics
Exposure to media and/or web site
• Impressions
• Clicks / Visits
• Page views
• Referrers / Sources
• New vs. Returning
• Frequency
Level of Engagement
• Pages viewed per visit
• Time on site
• Reading blogs / Participating in discussions
• Viewing Videos or Photos
• Uploading content
• Telling friends
• Inquiries / Registrations
• Transactions

6. Measuring value from actions

11. Conclusions
• Social Media metrics are increasingly tied to
revenue.
• The need of the hour is to focus on “R” of ROI, as it
relates to business goals and performance
indicators.
• Even though much of social media is free, one does
know that there are costs involved such as the cost
of engagement – as it includes
employees, time, equipment, and has an
opportunity cost. Relating these costs to the results
will reveal a formula for assessing the “I” as
investment.

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