Since not all social media users may be looking to purchase, businesses must understand the real value of the medium.
As more businesses spend on social media advertising, revenue for social media platforms like Facebook has grown substantially. However, despite brands investing more time and resources into social media advertising, the return on ad spend (ROAS) isn’t significant.
Michael Duke of Good Growth notes that this could be attributed to brands prioritising the wrong metrics, as social users “don’t typically fail to buy” because of lack of marketing. Rather than just tracking conversion and bounce rates, brands must assess consideration as a metric.
Duke states, the value of social lies in boosting awareness, engagement and familiarity. To assess ROAS, companies must de-emphasise commercial KPIs, provide quality engagement, establish a conversion route, and re-attribute all conversions to the initial touch, i.e., social.
[7 minute read]