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CMOs: Highest Social Media ROI From User-Generated Content

February 2, 2011

Among popular social marketing channels, user-generated content stands out for driving return on investment: 73% of surveyed CMOs say their companies facilitate customer ratings and reviews; and among those, 59% report average or significant ROI—making ratings and reviews the top social strategy to generate measurable return, according to a report by Bazaarvoice and the CMO Club.

Corporate/brand communities ranked second in generating average or significant ROI in 2010 (56%), followed by corporate/brand blogs (48%), Facebook (45%), participation in industry blogs and forums (41%), Twitter (31%), and LinkedIn (28%).

Though measurement remains a challenge, improvements in ROI were recorded in 2010 across all social channels analyzed, compared with 2009 levels.

Even so, more than one-half of CMOs (54%) say they were unable to tie any revenue to their social media efforts in 2010. They are, however, optimistic: 74% of CMOs say they predict they'll find the "missing link" between social media and revenue in 2011. Only 7% say they don't plan on tracking social metrics at all.

Below, other findings from the Bazaarvoice and The CMO Club report titled CMOs on Social Marketing Plans for 2011.

Key Metrics

Customer engagement metrics are still the most commonly used among CMOs: 68% use website traffic to measure their social marketing activities, followed by numbers of fans/members (59%), positive customer mentions (53%), page views (51%), and numbers of contributors (43%).

Meanwhile, sales conversion (33%) and revenue attribution (29%) stand out as key growth opportunities in social marketing measurement.

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  • by Christine Wed Feb 2, 2011 via web

    Interesting info but would prefer to see data like this in graphs.

  • by timop Wed Feb 2, 2011 via web

    Effective mobile marketing must: blend with the consumers' real-life activities; respect their privacy; enhance shared experiences; and offer new and improved features to capitalize on existing behaviors, such as texting and IM.
    The best and most effective mobile marketing will tell a story, keep the conversations real, bring people together, create shared experiences around the brand's story, and deliver these results.

  • by JNFerree Thu Feb 3, 2011 via web

    I agree that UGC (user generated content) is a key business driver that impacts ROI. We have trying to determine which is the better comment system to use on our client's blogs (ie) CommentLuv or LiveFrye?

    I would be very interested to hear what this audience thinks of these 2 solutions?

  • by Jeff Molander Thu Feb 3, 2011 via web

    Wouldn't it be just as easy to say:

    Key metrics: Mass communications measures.

    ... and move on?

  • by Beth Harte Fri May 27, 2011 via web

    JNFerree, LiveFyre is excellent and aids in a threaded conversation. I have found it easier to install (in WordPress blogs) than, say, Disqus.

    Beth Harte

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