The Dilemma of Social Media Measurement

[Editor's Note: The  following post by Michael Wolfe was originally published by and is syndicated with permission by The GreenBook Blog.]

Everyone with any sense of what is going on in the field of marketing right now knows that there is almost a mad frenzy about social media, the likes of which we have seldom seen. In fact, this frenzy has become so strong that it has spawned almost a gazillion self-proclaimed experts and gurus. It almost feels like the American Wild West, with the itinerant snake-oil salesman coming to town to sell us a bottle of his miracle cures.

As I have reviewed the literature on this subject, there appears to be three camps or approaches towards social media measurement. These are as follows:
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Good News for Marketing Budgets…?

Forbes Insights released the results from a study that surveyed marketing executives on their spending habits and their expectations for the coming year. A significant portion of the executives surveyed reported that they expect budget increases in the coming year. But the part of their organizations in which they expect to see the most growth was measurement as marketers continue to work to prove their worth through ROI. Nearly 65% said that the main reason for wanting to increase marketing efficacy was to prove its worth to senior executives.

So, as these key marketing executives remain optimistic about spending, they also remain acutely aware of proving their own value. That should function as an imperative for all marketers to make sure that they are measuring and optimizing every experience, no matter what channel they’re working in.

Within your own organizations, have you noticed changes in how you demonstrate the ROI of your marketing efforts? Is the need for explicit demonstrations of a return on investment necessarily a good thing? While we have better measures of the cause-and-effect efficacy of specific campaigns, does the need for capturing specific metrics prevent us from taking chances on big ideas? As always, we want to hear your thoughts in the comments below!