Summary
-Social media can no longer be ignored in business as it has both negative and positive impacts. Some of the principal barriers to assessing the revenue blow on social data recognized with Altimeter Group research are; social media is flourishing, multiple challenges hinder insight which shows that 56% of agencies and brands surveyed as reported by Altimeter Groups have the inability to tie business outcomes to social media and social data is different and new as involvedness, complexities and complications of social data that make it dissimilar from what enterprises or ventures have seen before. Next, Altimeter research shows that organizations lack confidence in quantifying revenue impact as only thirty percent of organizations assert to be tremendously effective. The last barrier identified in the research is that organizations adopt slowly.
-Secondly, organizations understand that deepening relations with communities and consumers is a major benefit of social media as much as it also generates revenue. Furthermore, social media play a major role in helping organizations make a well informed decision, which is majorly determined from conducting ROI analysis. It is therefore clear that companies may head to unknown risks when they ignore the significance of social media. Social medial revenues are measured in a number of ways that include anecdote, correlation and multivariate testing in top-down approach and tagging and links, integrated and direct commerce in bottom-up approach.
-However, it is imperative to note that there is no set manner in which revenue impact on social media can be measured. Nevertheless, some of the most advanced companies consider product, that is, whether the service or product is low or high and sales cycle deliberation item and business, that is, one should be able to identify the kind of business they are in. They also consider consumer, that is, the measurement possible is determined with consumer profile and media, that is, one can only tag products they are able to control online hence medium influences ones method of measurement.
-In conclusion, ways in which organizations could employ to measure web behavior are not as they were in the past. Therefore, some of the trends that can come up in the near future are mobile technologies bridging the offline and online worlds, the consumer being connected to the emerging technologies with multiple screens, influence being predicted by data and companies integrating external, enterprise and social data for holistic outlook.
References
Susan, Jeremiah and Andrew. (2012). Six Ingredients Top Brands Use to Measure the Revenue Impact of Social Media. The Social Media ROI Cookbook.
