The results of a new US report indicate that social media marketing spend makes a below average contribution to a firms performance. Despite this social media budget allocations are forecast to increase.
The mismatch seems to relate to the setting of social media objectives and an understanding of the marketers toolkit . Social Media is one part of the toolkit and one aspect of an integrated marketing plan. As such social media objectives should be realistic and dovetail with the firm's overall marketing objectives.
When asked to assess the impact of social media spend, 40% of marketing leaders said it made a ‘below average’ contribution to their company’s performance, while 49.8% said it had only an ‘average impact’. Only 3.4%, meanwhile, stated that social media had made a ‘very high’ contribution to profitability. The results are from a new report by The CMO Survey, which polled 289 top US marketing executives.