What is the ROI for Social Media marketing?

by Scott Hoffman on June 12, 2009

Courtesy AdAge

MySpace released a study, featured in AdAge, on the impact of Social Media from an ROI perspective. They partnered with an offline tracking program, Dunnhumby, which runs loyalty programs for supermarket retailers and has access to loyalty-card purchase data from 59 million people in the U.S. The campaign in question was for an unnamed personal-care brand that ran a $1 million campaign on MySpace last year, including a contest in which members submitted videos of themselves and friends for others in the network to vote on. (I think that this was P&G’s Crest promotion, but that is just an educated guess.) The study which described the reach and click thru rates as being below average, also uncovered the most important statistic:

It produced $1.28 million in offline sales, as measured by Dunnhumby, which compared purchases among shoppers not exposed to the campaign with purchases among those who were. That amounted to a 28% return on investment, not counting returns from repeat sales among consumers the brand won via the campaign.

This is good news for those people who searching for answers surrounding effective measurement tools to understand the value of a social media marketing campaign.

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