Methods for measuring the ROI of social media

As a member of the IAB’s social media council, we take part in a number of initiatives designed to help brands, agencies and media owners make more, and more informed, use of social media. One of these initiatives is around measurement, where our aims include understanding:

  • The objectives organisations have, in regards to their social media activity (e.g. acquisition, retention, increase in productivity etc)?
  • The type of results are they measuring
  • The sort of measurement methodologies are they using to do so

In November, Forrester announced the winners of its 2011 Groundswell Awards, providing a great body of best practice case studies. Using the data from both winners and finalists, we’ve been able to identify some key trends in the measurement methodologies brands have been using over the past year. You can read the full article on the IAB website here.

Iain MacMillan

Iain founded RMM in 2006, with the objective of providing good, strategic advice across all areas of digital and social media. Nowadays, the focus is entirely social and involves the provision of more than just advice – insight, inspiration and expertise in social media. Iain leads the strategy development and training teams on most client projects.

He specialises in leading client strategy projects in a number of sectors, including finance and gambling, where RMM has conducted studies into social behaviour in highly regulated environments. He also leads projects for travel sector clients, a sector in which RMM works in partnership with eCRM sector specialist, Spike Marketing. They work together across a number of clients, most recently including Neilson Holidays, Thomas Cook’s ski and active holidays division.

Prior to RMM, Iain spent five years helping to run the web design business, Tonic, winning and managing accounts such as Vodafone, GE, GAP, MTV and Barclaycard. Before that he worked at Tribal DDB London, working on Volkswagen before heading up the Victor Chandler, Sony Europe and Guardian accounts. And before that he had a colourful career in music promotions, running the annual Soho Jazz Festival in 1997.

Iain spends quite a large amount of time trying and failing to explain to his long-suffering wife why he really loves golf, seventies hard rock and eighties pop. She remains none the wiser.

One response to “Methods for measuring the ROI of social media”

  1. Sergei Baranov

    I took part in a lot of discussions about this matter (Social Media ROI Metrics), and, discovered that majority of participants categorically denied possibility to have metrics for Social Media ROI. The “spiritual” leader of them is social media celebrity Olivier Blanchard. He calls it Social Media ROI Hypocrisy.

    I “dare” to pronounce an idea, which is obvious for me, that Social Media ROI is based on website traffic resulting from social media activities + conversion of qualified visitors. Again, for me, this sounds as a criteria, or, accountability of social media activities within a company.

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