Tuesday, February 23, 2010

Social Media mArketing & Rate of Return

A major medium of attracting traffic on website- Social Media Marketing is actually much more than just traffic-attracting medium. Results for SMM activities on regular basis are generally measured on the scale of traffic it generates. But a lot more beneficial thing to do is to find out a more profitable & wider view of that.

Carrying on SMM activities, we generate profitable as well as non-profitable outputs. It is better to endeavor more for profitable outputs. There are two base points for planning every business activity: COST REDUCTION and REVENUE GENERATION. Any business, build up on these two base points, heap up to more and more profits.

Men, Money and Time are three major resources allocated for social media marketing and they definitely need payback. This payback is what we call Rate of Return i.e. ROI.
ROI: Total revenue generated – total cost / total cost
And, to get proper feedback, the three major resources are required to be allocated properly. Effective appropriation and usage of these resources means to get maximum possible output from out of optimum costs incurred; this means maximum ROI.

One benefit of on-line branding is that we can easily reach our target audience. Concentrating and focusing properly on our target audience helps to solve the above given purpose. We need to be focused at our revenue centers, so that spend exactly where it needed to be spent. Applying a minimum fair cost here will generate good ROI and will show us fruitful results of SMM activities.

Have a great Social Media Marketing and have great ROI!!