A great blog post by Collactive Blog, www.collactive.com on social media ROI.
High ROI for Social Media Marketing
January 23rd, 2008 by Tal Yalon, Director of Marketing
Engaging on social media is a hot trend, but many have doubts whether it provides actual return-on-investment (ROI). In a survey done by Collactive of close to 200 organizations, those with a successful social media strategy performed 27% better in achieving their business goals than those with poor social media strategy.
Social media presents unique opportunities to engage in word-of-mouth marketing, the most trusted form of marketing today. However, there is very limited data on the actual business results gained from such activities – making it almost impossible to calculate and analyze market-wide ROI. Non-governmental organizations (NGOs)’s special data disclosure obligations provide a unique opportunity to study ROI for social media engagements.
Many NGOs actively engage in social media, especially on YouTube. Therefore, the average view count of an NGO’s top videos provides an excellent indicator for their social media success and visibility. This information is easily obtainable from YouTube.
All NGOs have a major business goal – increasing their fund raising efficiency. Due to federal laws, the fund raising efficiency of every NGO is in the public domain. Collactive has partnered with Charity Navigator, the largest charity evaluator in the States, to receive this information.
Comparing the social media visibility and fund raising efficiency data of 192 national NGOs, shows that organizations with high social media visibility are 27% more efficient in accomplishing their fund raising goal than organizations with low social media visibility.
For the full results of this study, please download it here.
