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Andre Yee

Social Media Growing to $3.1B Over Next 5 Years

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Apparently someone forgot to tell the social media crowd about the recession. This past week, Forrester Research predicted that social media sector spending in US will grow from $716M this year to $3.1B in 2014. That's about a 34% CAGR.

According to Forrester, it driven by the need to innovate despite the downturn and social media offers a relatively low cost way of doing so. This is interesting because despite the hype, many larger companies are still cautious about social media. In fact, according to a study by Society for New Communications Research, only 16% of the Fortune 500 companies actually have a public facing blog. I'm sure there are many reasons for the slow adoption in that segment but part of the issue could be related to the fact that there are still no effective means to measure social media ROI.

We all know getting social media going for a company isn't free, especially for a larger organization, so being able to measure ROI effectively is a big problem. Solving the social media ROI challenge isn't just about measuring blog traffic or how many fans you have on your corporate Facebook fan page. It's ironic that while those measurements are quantitative, they aren't very meaningful. In a way, it's so Web 1.0...similar to measuring "eyeballs" - remember that?

The real issue is about measuring engagement in a way that links back to revenue or customer satisfaction. And, there's still no answer for that one..

6 Comments

Andre:

My company, Biz360 www.biz360.com provides measurement and analysis solutions for companies that need to understand the impact of social media. We have methodologies, processes and metrics to help w/engagement, growth, brand/reputation management and customer satisfaction. Please feel free to follow me on Twitter as I discuss these issues often http://twitter.com/Eric_Biz360

Eric…

Thank you for this article, always glad to hear good news. Social media is growing rapidly. Social networks growing everyday within the social media concept. At http://determined2.com Interactivity that promotes successful pursuit of life goals. The interaction within social media and social networks, giving users the ability to voice opinions, tell their stories, sharing experiences. Becoming mentors for support and motivation in the process of attaining goals.

I work for Perception Metrics (www.perceptionmetrics.com), a company that offers text analysis solutions for companies who need more than just the quantitative measures for ROI justification of social media. By analyzing the quality of discussion through positive and negative messages we can help companies answer questions pertaining to customer satisfaction and brand strength.

Eric - thanks for informing us of what your company does...the need to measure social media ROI is still in its infancy so companies like yours are at the forefront of this important work

Interesting use of social media. I'll check out your site. In a future post, I hope to highlight how different non-profits are leveraging social media and Web 2.0 in creative ways

Kathleen - thanks for commenting. In the future, I will be exploring different approaches to measure social media ROI so I'll definitely check out what your company has to offer

Andre Yee blogs about cloud computing, SaaS, Web 2.0 and other emerging technologies that matter to businesses.

Andre Yee

Andre Yee is an entrepreneur and technologist with nearly 20 years of experience in the business of technology.

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