Return on Investment in Social Media Marketing: Literature Review and Suggestions for Future Research
Social media facilitates and enhances communication between businesses and customers. Nowadays, although it is commonly recognised that companies implement social media into their marketing activities, it is also acknowledged that companies struggle to calculate the return on investment (ROI) from social media marketing efforts as most of them focus only on certain tangible outcomes such as the impact on sales and purchases. Attempts have been made by researchers to identify how to measure key impacts of social media in relation to marketing; however, there remains a lack of empirical data and no comprehensive overview of what “ROI” can mean for an organisation seeking returns on their social media adoption. By knowing how to measure ROI from social media, companies can produce valuable insights which can help enhance marketing strategies in promoting their products/services. Thus, the aim of this chapter is to provide a review of ROI in social media marketing with a particular focus on intangible outcomes such as brand awareness, customer engagement/relationship and eWOM.
KeywordsSocial media marketing Return on investment ROI Literature review SMM
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