A new model for assessing the value of social media activity

Abstract

Ever since social media became a natural part of the brand communications landscape, businesses have invested large amounts of time and money in increasing their reach across high-impact social media platforms. Brands can now focus on generating significant consumer engagement in social spaces and drive word of mouth, thereby generating earned media benefit. However, no agreed way to assess the value of that engagement exists, making it difficult to assess the value of investment in social media versus the value of investing in other marketing communications channels. To address this gap, the concept of social equivalent advertising value was developed. It was recognised that most social engagements could be classified into four simple categories – each designed to distinguish progressively deeper levels of consumer engagement – and that the cost of an equivalent non-social, e-marketing activity could be applied to each of the four categories. The metric values, both the breadth and depth of engagement that brands achieve, can be easily deployed to benchmark performance and to drive improved social marketing practices. It is therefore believed that it is a valuable new tool for marketers in their efforts to extract brand value from social media.