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Can You Justify Your Facebook Roi Essay

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Can
 you
 justify
 your
 Facebook
 ROI?
 
Return
 on
 investment
 has
 become
 the
 Holy
 Grail
 of
 social
 media.
 There
 is
 an
 increasing
 demand
 to
 
justify
  the
  costs
  of
  social
  media
  spending.
  According
  to
  a
  social
  media
  study
  conducted
  by
 
R2integrated
  in
  April
  2010
  (Marketingprofs,
  2010),
  35.8%
  of
  the
  262
  marketing
  and
  business
 
professionals
 cite
 the
 lack
 of
 data
 and
 analysis
 to
 develop
 ROI.
 Christian
 Bohike,
 head
 of
 marketing
 
communications
 at
 ING
 direct
 explains
 the
 problem
 of
 social
 media
 marketing
 like
 this:
 
 

 
“The
  social
  media
  industry
  has
  a
  lot
  of
  attention
  this
  year...
  it’s
  become
  a
  buzz
  word,
  yet
  the
  only
 
people
 who
 are
 making
 money
 off
 of
 it
 are
 those
 who
 are
 organizing
 conferences
 on
 it...
 Expectations
 
are
 over-­‐rated
 –
 99
 out
 of
 100
 social
 media
 campaigns
 in
 2009
 failed”
 (Donaldson,
 2010)
 
 

 
Research
  Question:
  To
  what
  extend
  have
  B2C
  marketers’
  difficulty
  in
  measuring
  the
  ROI
  of
  their
 
Facebook
 campaigns?
 

 
This
  paper
  explores
  the
  current
  state
  of
  marketers
  and
  ROI
  in
  social
  media,
  the
  metrics
  used
  to
 
measure
 the
 ROI
 of
 Facebook
 campaigns
 and
 why
 marketers
 have
 difficulty
 with
 justifying
 their
 social
 
media
 investments.
 
 

 
There
  has
  been
  an
  explosive
  growth
  in
  the
  number
  of
  companies
  that
  are
  now
  active
  within
  the
  B2C
 
dimension,
  using
  different
  channels
  such
  as
  Facebook
  to
  reach
  their
  customers
  (boyd
  &
  Ellison,
 
2008).
 For
 these
 companies
 measuring
 the
 impact
 of
 online
 advertising
 used
 to
 be
 relatively
 easy.
 It
 
was
 all
 about
 analytics:
 Unique
 Visitors,
 Page
 Views,
 Cost
 per
 Clicks,
 and
 safe,
 measurable,
 defined
 
metrics.
 (Fisher,
 2009)
 With
 social
 media
 this
 alone
 isn’t
 adequate
 anymore
 because
 customers
 are
 
talking
 to
 each
 other
 (and
 much
 of
 it
 is
 not
 on
 your
 site).
 It’s
 about
 engagement
 with
 your
 customers,
 
your
  potential
  customers,
  and
  your
  critics,
  at
  every
  level
  of
  social
  interaction
  that
  modern
 
communication
  has
  to
  offer.
  According
  to
  (Laroche
  ,
  Habibi
  ,
  &
  Richard,
  2013)
  marketers
  are
 
attracted
  to
  social
  media
  because
  it
  is
  a
  powerful
  means
  of
  influencing
  customer
  perceptions
  and
 
behavior,
  and
  that
  social
  media
  also
  bringing
  likeminded,
  but
  different ...

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