Where is the Profit in Social Media?

Where is the Profit in Social Media?

It is hard to express the profit that social media brings to a business in euro, pounds or dollars. Businesses that use social media can nonetheless measure the value of their social online actions. Every action on social media has to contribute to the success of the business. When you think of success in terms of profit, however, you tend to see only monetary value. Monetary value is not something that you gain immediately when you use social media in your business. The effect that social media has on the success of your business is best measured in KPIs, or key performance indicators.

Social Media 

The following are important factors for measuring the performance of your social media activity.

– Recommendations by clients/customers.
– An increase in the number of fans/followers of your brand or business.
– A higher position in search engine rankings.
– More page views and a higher number of visitors to your main website.
– More posts/mentions about your brand or business.
– A decline in marketing costs.
– An increase in turnover from existing and new customers.

For social media marketers these factors are vital measuring points. For example, the buzz created by a large group of fans or followers is an important contribution to building up the reputation of your brand or business name. Every post on a social media network adds to creating an image for your business. On top of that, social indicators are gaining importance in search engine algorithms. That is why plenty of buzz might help you get a higher ranking in Google’s search results in the near future.

Social Media

Social Media Company UKThe strategic and effective deployment of social media marketing techniques can also lead to a substantial lowering in marketing costs. Naturally, lower costs mean more profits for your business. So you see that social media use can translate into profit in the long term. While it might be hard to express the worth of social media in financial terms, you can measure its value by using key performance indicators. KPIs will help you to determine how social media is contributing to the growth of your business.

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