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The impact of social media on return on investment: Registrations and revenue


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While social media spending continues to increase, measuring its impact remains a challenge for most organisations, with surprisingly few able to access the quantitative impact on business outcomes. With an understanding of these measurement issues, this paper examines an assessment of the social media performance model (SMPM) — an analysis procedure that enables improved return on investment using data science. In the context of a business-to-consumer nonprofit organisation, executed across social media, sales promotions, e-mail campaigns and Facebook news feed ads, the use of the model to provide predictive insights will be explored. As new insights are derived from the findings, the SMPM enables data-driven strategy that can be used to influence business outcomes achieved not only through organic social media but also other forms of marketing communication efforts.
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Keywords: B2C branding impact; advertising effectiveness; return on investment; social media impact; social media strategy

Document Type: Original Article

Publication date: February 1, 2016

More about this publication?
  • Journal of Digital & Social Media Marketing is the essential peer-reviewed, professional journal for all those involved in the marketing of products or services using digital channels. Its overriding goal is to provide an authoritative, practitioner-focused forum to support the professional development of all those working in, or entering, the field. As such, the Journal's content is both of direct relevance to the practice of digital marketing and intellectually rigorous.

    Topics range from measuring and improving digital media effectiveness and ROI to search engine optimisation, from social media marketing to partner marketing, from mobile marketing to email marketing, website design, display advertising, pay per click and detailed marketing analytics. In short the Journal focuses on any of the established and emerging digital media, tools and practices requiring new approaches to marketing, branding and understanding customer behavior and attitudes.

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