Social Media ROI – You have to “play” to play

With 2009 drawing to a close, and 2010 almost upon us there has been an increasing amount of buzz online regarding social media costs & the return on investment (ROI) that it offers. 2009 will most likely go down in history as the “year of social media”, a designation that has businesses and marketers scrambling to figure out how they fit in, and how they can quantify the results. Social media activities are proving to be one of the more difficult marketing strategies to measure, but the general consensus seems to be overwhelmingly positive. As I was reading this article discussing the fact that PEPSI is pulling their TV advertising from the superbowl next year in favor of online initiatives, it really made me stop and think. PEPSI has been advertising in the superbowl since 1987. They have spent over $140 million on superbowl advertsing over the years, including an estimated $33 million last year alone. The fact that a company who was comitted to the superbowl (to the tune of $30 million/year) has done an about-face, really adds weight to what we have been discussing with our clients and in presentations all year. This is a monumental shift that will have enormous ramifications within the advertising world as we know it.

Social media is here, and it is here to stay. The general buying public has dramatically shifted their decision-making behavior, and I feel that we are in the midst of the most fundamental shift in consumer activity seen in decades. Social media tears down borders, unites those with common interests, and creates an almost singular consciousness that a new wave of marketers is trying desperately to tap into.

So what will work? I wish I had the answer to that question. What seems to be working is companies that have dedicated themselves wholeheartedly to a new, open, honest & transparent business model. A model based on honest communication and responding to the needs to the consumer. It may sound old fashioned, but in many ways this marks a return to business ethics and fundamentals that we haven’t seen since the onset of the industrial revolution. It does not matter if you are marketing real estate, or trying to sell a new type of socks – the time to get involved, to get started is now. It will not be easy (to this I can attest) and there are no right or wrong answers. Be honest, be yourself – as a business, or an indiviual. The rules are changing, and this is going to be a VERY interesting year.

I’ll leave you with another video that discusses the topic – many of you may have seen it, but it really should make you stop and think, no matter what business you are in.