You might hear about the potential of social media as a way to help multiply your business’ revenues, far more than what you have spent throughout your digital marketing campaign. A few years ago, you might hear about businesses seeing big returns, 100,200 or even a thousand percent.
Even today, a lot of digital marketers will tell you it is one of the highest Return on Investment digital marketing methods available in the market because of the non-existent and low-cost barriers to entry. The social media marketing world has become more commercial-saturated and competitive.
Organic search is declining hastily. It means that some truths need to accept when it comes to digital and social media marketing.
Based on studies, social media is not just for techy influencers, but it is also for businesses that are looking for a way to boost their sales and digital presence. Read more about it at https://vaynermediaaugusta.com.
Not all digital marketers see a positive Return on Investment
Even though at least 77% of digital and social media marketers are using one or more social media channel to market and promote their business, only 49% of business owners claim to see a Return on Investment. There are reasons for the discrepancy – a lot of it is accounted for in the next points.
It takes a lot of effort and time to have a successful business
Social media marketing is not something you can turn on and expect to see an increase in your business’ revenue and conversions. It takes a lot of effort and time to build a successful and effective social media marketing campaign.
You need to have an in-depth understanding of your consumers or your target market, you need to be more active, as well as carefully craft your time and messaging of your contents adeptly, for days, months, sometimes for years, before you can experience the return of your investment.
There’s a big chance that you will not break even your first few months, because it will take a lot of time to generate a notable following and you will make a lot of errors when you are starting with your social media and digital campaign.
The meaning of ROI or Return on Investment may differ
Let’s say one of your friends who owns a business tells you they see a 200% Return on Investment in their business. That is very impressive, but you need to ask, “Where is the ROI coming from?” “Are they measuring their returns based on the number of traffic they are getting from social media sites?” “Based on their sales increase that may or may not come from social media channels directly?”
To make this more complicated, “Are your friends computing the cost accurately, including the time of your full-time employees working on your digital marketing campaign?” In most cases, Return on Investment is a self-reported measurement, so it is hard to know you are getting an accurate reading.
Social media Return on Investment or ROI depends on other digital marketing channels
In most cases, the influence of the social media campaign will largely depend on the strength of the effort in other social media channels. For example, let us say you have more than one company that is doing the same thing, let’s say Company A, and Company B.
Company A launches a campaign in social media and starts paying $100 per week for traditional advertising, and starts establishing a client base. After two or three months, Company A made a little progress and beginning to break even on its social media campaign spending. In the meantime, Company B is thriving in its customer base, so they decided that they need to start a social media campaign and establish their digital presence.
By the end of the month, both Company A and Company B have more than 1,000 followers on Facebook, Twitter, or Instagram. At this point, Company A has spent more than a thousand dollars on advertising, but Company B has only invested less than $200, yet their posts are getting the same amount of social media reach.
This example shows how digital numbers can become an essential part of brands with considerable advertising money to spend on marketing efforts or companies with an already-existing social media audience.
A positive Return on Investment is getting harder to earn
An excellent and useful social media marketing campaign Return on Investment is much harder to earn in today than a few years ago, because of the overall decline in the organic search reach of the brands achieved on social media platforms.
Social media applications have decreased the amount of visibility a company or an organization page can get without spending a lot of money, it also ensures the mainstream visitors less commercial experience when surfing or browsing the news feed of their Facebook, Twitter, or Instagram account, and drive more necessity for paid ads.
At some point in the future, the advertisement may be necessary for businesses to be seen on all social media platforms. These ads can yield a good Return on Investment in their own right, but they are inherently expensive compared to organic marketing campaigns.
Some businesses are naturally better at using social media marketing than others
I think it is a little bit foolish to say that some businesses or industries can’t do a successful social media campaign. A lot of companies have the potential to see a positive Return on Investment using digital marketing. But some sectors will have an easier time doing marketing than others.
Companies with strong, interesting and visual content, topics or those that are marketed to a demographic that uses social media will always outperform industries or businesses with scanty demographics.To know more about social media advertising, click here.
Growth will require some luck
One quality, viral content can scale your social media reputation from amateur to professional, but the science behind viral contents are reasonably limited. Even if you have the right methods, you still need the element of luck to your success.
Your competitor’s contents or post might see, more shares than yours because it was timed differently, or maybe their posts or contents happened to hit the right target market. If you want your business to be successful, you need to set an achievable goal and realistic expectations. It means you need to have a better understanding of the potential and nature of your methods before you decide to jump in.