We touched on this briefly in our Friday Wrap Up – The Week That Was but with so many of us embarking on social media in 2011 it is worth exploring further.
As a marketer, we are all faced with the task of demonstrating Return on Investment (ROI) to senior management. Prioritising social media spend however, is something many companies have yet to master.
Mashable reported last week on a report released by digital strategy firm Altimeter Group in the USA, about ‘How Corporations Should Prioritise Social Business Budgets’. Data came from interviews conducted with 140 corporate social strategists to create a standard for categorising social media programs into novice, intermediate and advanced maturity levels.
The below is a depiction of priorities that each program should focus on.
Assess your Social Business Maturity Levels
The report also includes an assessment guide for figuring out where your business sits in the social web. It asks some basic questions around your social media program, leadership and organisational model. It looks at your internal processes and policies, how you intend to educate your staff, if not doing so already, measurement techniques, and the technology you have adopted.
You allocate points from 1-3 for each question and total the amount once finished. The total providing you with your Social Business Maturity Level.
Social Media Spend – it’s time to get down to business
Now that you know what your social business maturity level is, would you be surprised to know that the average spend in the USA for a novice program is $66,000? and the average team 3.1 people?
We certainly were, particularly when the report places the novice category in the testing or experimenting with social media phase.
Intermediate programs are enjoying a budget of more than $1million with teams of up to 8.2 people and advanced programs leap to 20.8 people on average with a budget of $1.3million.
Final thoughts…
Social media does require investment from a business, particularly if you want to be able to measure a strong ROI.
We are beginning to see organisations at this level in Australia but nothing like what we are seeing in the USA. Make 2011 the time for change, step into social media and explore, experience the benefits of engaging with you audience on an entirely different level and watch your business grow as a result.
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