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Johannesburg - Social media have made a massive impact on communications - but the success or even spectacular failure of a marketing campaign seems to come down to the roll of the dice rather than real business acumen. Social media are taking over our lives, but we don't know how to use them effectively.
This warning comes from Richard Mullins of Acceleration, a digital marketing consultation. "ROI benchmarks and models are still immature," he says. "Unlike other channels such as search, a tool to measure advertising value still has to be determined. Therein lies the challenge - how to measure engagement".
Already, the stellar growth rates in social networking have taken a tumble. eMarketer recently slashed its growth forecast for the social networking market from 32% to 17%.
"Most social media sites are still struggling to show advertisers how they can tap the audience for a proper return on investment," says Mullins. "Many advertisers have been disappointed with the results."
The problem is not only from advertisers not knowing how to monetise the opportunity, but from social media owners themselves who have yet to understand the economic models.
Unless the right mix is arrived at, there might be disenchantment with this advertising before its potential is uncovered. Mullins says the strength of social media lies in their ability to collect data for behavioural and demographic targeting. With privacy being an issue, he suggests that users be involved in the process.
"Allow users to decide what information they will make available to advertisers and to manage their preferences and profile themselves."
- Fin24.com
