The ROI of Social Media (Infographic) When you're spending lots of time and money on social media, it's important to know just how much it's helping your brand.
Opinions expressed by Entrepreneur contributors are their own.
No matter what business you're in, social media is a necessity. And when you're spending time and money building your brand's social presence, it's important to know whether these efforts are making an impact.
Related: 6 Social Media Monitoring Tools for Managing Your Online Presence
Of course, social media can be tough. But the good news is you're not alone. A number of professionals admit they don't know if their social media efforts are actually paying off. According to research by MDG Advertising, 44 percent of CMOs admit they have not been able to measure the impact that social media has had on their business. Not only that, but only 36 percent say they have a good qualitative sense, but not a quantitative one, and a mere 20 percent say they've actually managed to quantify social media's impact. Given these numbers, it's no wonder marketers say their top challenges are social media related, including difficulty measuring ROI, publishing content and developing a social strategy.
Related: 5 Social Media Tips to Help You Drive Sales
However, with the help of digital tools such as Hootsuite and Google Analytics, tracking social media is a little easier. These tools make it simple to measure engagement, likes and comments. Where people run into trouble though is measuring the actual sales that come from social media. In fact, a whopping 58 percent of brands say they measure engagement but not actual conversions; only 21 percent say they measure conversions.
Related: 4 Tools for Automating and Recycling Social Media Posts
Don't let these number discourage you though. From increasing exposure to building a loyal fanbase -- your social media strategy may be working, but the actual numbers are not quite clear. However, with the right investments, platforms, employees and data, you'll be well on your way to understanding social media's full impact on your business.
To learn more, check out MDG Advertising's infographic below.