Social Media Investment
Companies of all sizes have marketing and advertising budgets. Large companies have inflated budgets (I read Microsoft allotted $80 million to advertise bing.com), while small business may just spend a few hours at a networking event. In either case, money is being spent and it is often looked at as an expense. It will go on the balance sheet as an expense and it will be a write-off come tax season. This is all true of traditional marketing and advertising methods.
I contend that social media/new media is actually an investment and not an expense. Businesses will need to spend time, money or both to gain the benefits of social media, however the long-term benefits are amazing. Initially, there may not be a ROI and it might take some time to realize any return that directly relates to social media activities. I am not aware of any accounting practice that quantifies the return on building a brand. A reputable brand transcends both time and the expense of building it.
It is much more difficult to build a brand these days in large part to social review sites. There has never been a time in history where a consumer can get quality testimonials from other consumers from all over the world. Because of this, companies that make an investment in social media and build a brand will benefit from the time and money they dedicated to the cause. The days of creating a t.v. commercial or creating a newspaper ad and waiting for the customers to roll in are long over.
Your message must be repetitive across all mediums and the social one shouldn’t be ignored. Consumers that see your ad in the paper or on the tube are turning to the internet to see what others are saying about you. Shouldn’t your company have a voice on social sites instead of others speaking for you?
Your social media campaign success metrics shouldn’t be based on a monetary return. Consider your social media campagin a long-term investment that will pay off with a strong brand that stands the test of time.
It’s out there…go get it!
