Earlier this month, I came across an interesting article about social media marketing ROI on business insider. Apparently according to a survey targeted among about 2000 marketers. Though over half of them believe that their social media efforts will generate a return for them in the future, only 23% said their current social media efforts are working.
This instantly reminds me of the IBM report on social advertising at the end of 2013, which dropped a bomb in the retail industry. IBM looked into traffic and sales of nearly 800 ecommerce sites during black friday week and said that only about 1% of these visits came from social networks. simply put, social media was not working for retailers.
Some marketers argued that the result was simple and straightforward and it doesn’t make sense to continue putting so much time and resources into something that has almost non-existent return, while others said that the analysis was flawed because the way IBM measure the effectiveness of social media was by looking at direct conversation instead of the impact social media makes on shoppers’ purchasing decisions in the long run.
I agree with the latter. I think the role of social media here is to build brand awareness rather than generating revenue. Just because people are not directly buying through Facebook, it doesn’t mean marketers’ efforts on social media don’t increase the possibility of the final purchase.
My question to you guys: From a business point of view, is it necessary to keep investing in social media for Ecommerce retailers? From a customer’s point of view, what are some of the most impressive social media acts retailers have done recently that you can recall?