Social Local Media: Study Shows Measurement Confusion Aplenty

There are gobs of research supporting social media’s evolution into a mainstream marketing vehicle for businesses of all sizes. BIA/Kelsey’s Local Commerce Monitor Wave 14, for example, found that 48 percent of SMBs already operate a Facebook page. However, there’s mounting evidence that most marketers are still grasping for answers when the subject turns to return on investment. As a result, the evolution of the platform from experimental to performance-driven remains gradual.

In a study of social measurements used by CMOs (primarily representing big brands), Bazaarvoice and The CMO Club uncovered that engagement metrics outscored bottom-line performance indicators in 2010, largely consistent with 2009 results. The only monetary measure to spike was conversion, which more than doubled among the sample. However, revenues (seemingly a must!) lagged behind soft data such as positive customer mentions, fans and contributors.

Of course, the chorus line for 2011 (as it was for many in 2010) will be “the year that social ROI becomes a reality.” Perhaps, but study projections indicate that revenues will continue to track in the middle of the pack.

Parsing by platform, Facebook scored highest in “significant ROI,” but at a paltry 15 percent. More than 55 percent of respondents had no way of tracking it, either for lack of use or inability to measure. Twitter and LinkedIn scored even lower in both categories.

Measurement, though, isn’t as simple as which number to pick. A host of factors must be considered: what behaviors a business wants to drive, how particular audience segments interact socially, and the varying points in the purchase funnel in which they encounter the brand. All these affect the social actions that a retailer chooses and the proper metrics to track them.

If your company (publisher, agency, marketing company) works with local businesses on their social media marketing, let us know which metrics you’re emphasizing, and which you will be pushing to your clients in 2011.