Vesta Digital Blog

How Tracking Your Social Media Marketing Efforts can Help Your ROI

Posted on: July 30, 2010

Thousands of companies are exploring the beneficial use of social media sites like Facebook and Twitter to boost their brand recognition and visibility. While these social media sites are mainly used for marketing efforts and creating “buzz,” how exactly does social media marketing efforts convert to earned revenue?

Tracking Your Social Media Efforts

According to Brian Rogal, a writer for Internet Retailer, there is a new social media tracking tool on the market. Digital River, a software company for e-commerce and consumer technology, has recently announced a new platform called SocialStream that allows a client to track promotions and announcements sent to Facebook and Twitter. Some options you have for tracking income include reports on how much traffic the social media sites generate, conversion rates, and revenue per visitor. The company has tentatively suggested they will be adding other social media sites, such as YouTube to their platform.

The cost of the platform is not available to the public as Digital River states the cost is based on negotiations with each respective client.

The tracking ability that Digital River is experimenting with, could set standards for e-commerce metrics. While social media is widely known as a great cost-effective marketing tool with an unlimited audience reach, the ability to actually track direct conversion rates gives that much more power back to the company.

Brian Walker, an analyst with Forrester Research, Inc., discussed the tracking tool with Rogal. He stated:

What Digital River has done is a bit ahead of the curve in terms of integrating this capability directly with their platform, but it may not be unique for long.

Walker discussed the idea that social media has generally been associated with a way for companies to engage with their customers online, and expand their following. However, the ability to measure the monetary effects of feedback from social media marketing, for example, hasn’t been very tangible until recently.

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