Mission Impossible: Measuring Social Media Return on Investment
In August 2011, the digital strategist at Online Advertisers, a small digital media company, was faced with finalizing a value proposition for a new social media marketing division, Online Advertisers Social. Online Advertisers was a very creative-driven company. Data and analytic capabilities were generally not the reason why clients worked with Online Advertisers. Online Advertisers attracted clients by being young, in touch with trends, energetic and creative. However, clients (especially larger clients) wanted analytics, metrics that could be used to objectively quantify return on social media investment. Aside from attracting analytics-focused clients, the digital strategist saw an opportunity to position Online Advertisers Social as a social media company that offered smaller businesses insight into their target markets that they would not otherwise have access due to budget
constraints. The digital strategist needed to create a value proposition that balanced an analytics focus with Online Advertisers' creative marketing and design. The company was too small to offer a large-scale competitive analytical package, and had relied too heavily on intuition in the past to create a competitive data-based social media package. The digital strategist goes through the nuances of social media management, including campaign management and community management, and the issue of offering services related to the measurement of social media ROI in a rapidly growing, and maturing, industry.
This case is appropriate for undergraduate or MBA level courses in intro marketing, consumer insights, marketing management and e-commerce. This case exposes students to the strategic complexities underlying social media management (from business to business and business to consumer) and the challenges in defining a value proposition for a new social media marketing division. The major learning objectives are to:
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Enable students to appreciate the complexity of social media management and measurement, as well as the necessity for measurement.
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Expose students to the power of different components involved in social media marketing.
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Provide students with the opportunity to determine a value proposition for a company with human capital and resource constraints, competing against larger and seemingly more sophisticated competitors.
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