For week 3, we’ll be discussing Cost vs. Revenue (ROI) and Pros vs. Cons in Digital Media Campaigns Using Social Media (SM), SEO, Online Advertising and Email Marketing.
Your 3rd blog will cover this topic. You’ll need to find a source/article to site statistics and add the link to your post. Please check your lecture notes as you can use this information as well. You’ll need at least 400 words. It needs to be posted before class on August 3rd.
A LOOK AT ROI in Digital Media Campaigns
Social media is getting a lot of hype. Online marketers are racing to create digital media campaigns. Google analytics, SEOmoz and Facebook Analytics allow Digital Marketers to analyze and evaluate the results of Social Media Campaigns. In my 1st lecture I pointed out the retuirnon investment for facebook and twitter. While social media usage has exploded, it’s still unclear if it is effective in generating revenue.
The big PRO of Social Media is it’s penetration and user base. Digital Buzz provided a great summary of social media statistics for 2012 in it’s Jan 3rd post. – Check it out: http://www.digitalbuzzblog.com/social-media-statistics-stats-2012-infographic/
“It’s pretty impressive to see that Facebook has grown to more than 800 million active users, adding more than 200 million in a single year. Twitter now has 100 million active users and LinkedIn has over 64 million users in North America alone.
Facebook Statistics 2012:
- An average Facebook user has 130 friends and likes 80 pages
- 56% of consumer say that they are more likely recommend a brand after becoming a fan
- Each week on Facebook more than 3.5 billion pieces of content are shared
Twitter Statistics 2012:
- 34% of marketers have generated leads using Twitter
- 55% of Twitter users access the platform via their mobile
General Social Media Statistics 2012:
- 30% of B2B marketers are spending million of dollars each year on social media marketing
- Nearly 30% of these users are not tracking the impact of this marketing
- 20% of Google searches each day have never been searched for before
- Out of the 6 billion people on the planet 4.8 billion have a mobile and only 4.2 billion own a toothbrush”
Beyond the Numbers – is Social Media effective as compared to email marketing and online advertising?
The numbers are impressive. But, do they translate into revenue, customers for a brand? Is social media more sexy or more profitable than email marketing, and online advertising? Yeah, SEO is great..but, it takes a while.
Call me old school, but, I’m a fan of drip marketing – email marketing. Facebook’s revenue generation is underwhelming at best. I haven’t seen much from my twitter or tumblr or integrated social media campaigns in terms of revenue. Yes, they are low cost but, the results are best for customer service efforts and very specific promotions. It’s just my opinion – I’ll check for facts.
Why is Email marketing still king of ROI?
According to the Direct Marketing Association, email marketing generates a $40.56 return for every $1.00 spent– the highest of all comparable media. Search returns $22.24, Internet display advertising returns $19.72, mobile returns $10.51 and social networking returns $12 for each dollar spent. In 2011, email generated $67 billion in revenue compared to $32 billion for social media. This year, email marketing is expected to generate about $82 billion, up 22.3 percent from last year, compared to $39 billion for social media, up 21.9 percent from last year.
That means that email marketing produces more than twice the revenue while being almost four times more efficient than social media.
The MORE interesting Facts about email marketing vs Social media marketing
According to Nielsen:
- Facebook’s 900 million users is a fraction of the 2.9 billion email accounts that exist.
- About 50 percent of people check their email multiple times per day while about 13 percent check it hourly.
- Email is the top activity on smartphones; 60 percent of users check their emails while watching a TV program.
- Every day, 294 billion emails are sent, while only 172 million people check their Facebook accounts.
- Lastly, email is by far the most pervasive activity on the mobile Internet. As this Nielsen chart shows, the majority of every mobile Internet hour is spent in email – 25 minutes on email versus 6 minutes on social networks or blogs.
BOTTOM LINE: If You’re Looking to Generate Revenue and Plan to Track Results, Invest in Email Marketing! :
Clearly, digital media campaigns need to include online marketing. It’s not sexy but, it works! Where to begin? Start with updating your website based on SEO add features that incent traffic to give you an email address. Then invest in email marketing, followed by a blog. And lastly, focus your budget on Facebook, LinkedIn, Twitter and Google+ – in that order.
Email marketing should be at the heart of your online communications with prospects and customers. It’s the most inexpensive, most commonly used platform by all ages and all demographics.
Social media may be creating a lot of hype, but it’s email that is generating revenue. After all, do you know anyone who doesn’t have email? I bet not.