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BizReport : Social Marketing : May 02, 2012

Companies highly engaged in social report 4X ROI of those that aren't

Companies that have an extensive social media presence report ROIs more than four times that of companies with little or no social media activity, according to a survey of senior executives in the US by management and digital consulting firm PulsePoint and the Economist Intelligence Unit.

by Helen Leggatt

pulsepoint logo.jpgThe survey of 329 senior executives found that 84% claimed social media campaigns had raised the effectiveness of their marketing efforts. A similar number (81%) said having a social media presence increased their company's market share.

Other effects of social media reported include improved product and service quality (68%), improved brand or stock value (67%), improved speed to market/innovation (65%) and improved collaboration with partners (65%).

Furthermore, companies that had adopted an "extensive social engagement presence" reported ROIs over 4x those of companies that had not embraced social.

According to PulsePoint, "Organizations are moving from an experimentation phase to achieving measureable business impact on social engagement activities. This will be the year CEOs, CMOs and CCOs establish KPIs and benchmarking to better measure performance."

Jeff Hunt, partner and co-founder of PulsePoint, recently provided some advice for those that need to nudge their CEO in the direction of social media, including instilling a fear of NOT getting involved.

"The many "switched on" leaders we've worked with in the past few years typically experience an epiphany moment - a moment when they finally "get" the value of having a presence on Facebook or Twitter or just in paying attention to what's being said about them online," writes Hunt in a SpinSucks guest blog. "It's usually a result of a mix of convincing data combined with an emotional stimulus rooted in either hope or fear."

Tags: business objectives, marketing campaign, ROI, social media, social network

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