Thursday, April 7, 2011

Does Social Media Marketing Actually Work?

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Fewer than 1 percent of website visits come directly from a social media URL according to research just released by customer satisfaction analytics experts ForeSee Results.

The company surveyed 300,000 consumers on more than 180 websites across a dozen private and public sector industries.

It's not all bad news for social media marketeers. 18 percent of site visitors (averaged across surveyed websites) report being influenced by social media to visit a website. However, there was considerable variation in the results for different companies.

Marketeers's social media budget is constantly increasing as the survey data to the right shows. Forsee Result's research showed that the resources that companies put into social media and the results they receive vary wildly. Spending more money does not automatically lead to higher numbers of visits to websites, brand awareness or sales.

Promotional emails are also sometimes neglected in favour of the more glamorous social media, in spite of the fact that such emails influence 32 percent of purchases.

Companies themselves seem a bit confused about their objectives when it comes to social media. Internet Retailer Magazine surveyed 400 U.S. companies (19 percent of them retailers) in December 2009 and January 2010. It found that 74 percent of companies wanted social media to drive traffic to their websites while only 56 percent wanted it to increase sales. Shouldn't it be the other way around?

Tags: marketing, Social Media

Companies: forsee results



By ERICA GOODE 07 Apr, 2011


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