Social Media ROI (Return on Investment) – Enterprise 2.0

“Social media is defined by Andreas Kaplan and Michael Haenlein as “a group of Internet-based applications” (Crandell, 2012).

This week topic is linked to ROI with social media or social web their relationships. In mainstream e-business on the web that enterprises have invested resources and budget in to social networking is a trend but for companies using social media to achieve real, tangible, measurable results, the real question is, “How does this grow my commercial profits?” Actually, there is no right answer for ROI on social media because ROI involves many terms and potential customers. Therefore, enterprises have the tools in place to assign an actual financial value to social endeavors. However, this week I will describe is Social Media ROI a Reality and how enterprises evaluate and maximize ROI in social media.

The table of list is what kind benefits would have ROI social media

(Gibson, 2007-2009) Social ROI copyright. Measuring Social Media ROI Is Possible.

This is formula of Social Media ROI

It is apparently, ROI social media would bring various benefits but there is one more thing is even low barrier to entry to have a blog and allows really anyone to create strong online brands. Therefore, how to increase the ROI of social media marketing is an issue.

There are some principles of increasing social media optimization.

Ignite Social Media: To enhance ROI

To measure ROI social media should be integrated Right -Time Marketing

“Right-time marketing is an approach to marketing which selects an appropriate time and place for the delivery of a marketing message” (Goldstein & Lee, 2005). Thus, understand the customer that is customer segmentation is important.

Principle No. 1: The Right Time doesn’t mean Right Now

Under the principle to find out an appropriate channel or platform to deliver the information for customers is right time. For example, prime time of international games or utilize news event.

Principle No. 2: What kind of tools or platforms is a good way to inform?

There are more and more people are not only use computers to receive information or use social medial which means mobile devices have more high usage in real life. However, raise investments in mobility social networking is necessary such as Facebook, Twitter, Foursquare, LinkedIn, Google+, Pinterest, Instagram—to attract and retain customers.

In addition, Social media is a catch-all term for web sites which provide radically different social activities. For example, Twitter is a social site designed to let people share short messages or “updates” with others. Facebook, in contrast is a full-blown social networking allows for sharing, photos, joining events and a variety of other activities. Furthermore, evaluate Multimedia platforms has significant meaning. Suchas YouTube, BlogTalkRadio because these kind media contents usually have interaction with use (video, photos, audio). To conclude, leverage combination of social media tools is the most important things of ROI.

A successful Social Media ROI example – Cisco uses Social media to saved $100,000

This example is a really typical model of social media ROI

Cisco social media configurations:

2:Blog:Each quarter has 475000 data flow

3:Twitter:More than two million followers

4:Facebook:79 groups and ten thousand fans

5:YouTube:300+ channels,2000+ Video collection

6:Second Life(Virtual Games.):150000 followers,50+activities

8:Flickr:300+ million photos,four thousand fans

Four years ago Cisco Company has already involved social media people can found that facebook/twitter/youtube has Cisco Company tracked but in that stage Cisco had difficulty to find out clear evidence to show up the ROI result but after that Cisco has succeed integrating Social Media Widget with router through demonstration activities.


Fisher, L. (2011). Social media ROI: 10 companies that made it work. Retrieved from 43730.aspx

Goldstein, D.; Lee, Y. (2005). “The rise of right-time marketing“. The Journal of Database Marketing & Customer Strategy Management 12 (3): 212–225. doi:10.1057/palgrave.dbm.3240258

Gibson, S. (2007-2009) Social ROI copyright. Measuring Social Media ROI Is Possible. Retrieved from

Kimbarovsky, R. (2009). 10 Small Business Social Media Marketing Tips. Retrieved from

Shayon, S. (2010). Social Media Benchmarks. Retrieved from

Social@Cisco – Social Media. Retrieved from

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9 Responses to Social Media ROI (Return on Investment) – Enterprise 2.0

  1. 引用通告: Social Media ROI (Return on Investment) – Enterprise 2.0 | chunweiinn347

  2. WANG, Rick 說道:

    Hi, I think social media may increase corporations income. In return on investment section, companies need to do some surveys in market, which one is popular platforms and tools in market? That can reduce some unnecessary risk and increase return on investment. Absolutely, time of investment also affect return on investment .

  3. atang 說道:

    Hey Owen, good blog regarding the use of social media ROI, The 2 principles you share is a good way to see that having a good investment using social media requires the right time to use it AND using tools/platforms which will reach a higher audience! Have a look at my blog when you have time!

    • chunweiin346 說道:

      Hi Andy, I think the ROI revolution Blogging is a blog gives your social media marketing strategy a home base to send potential buyers to close the deal. Facebook and Twitter are great for engaging potential buyers, for gaining awareness and for getting satisfied buyers to share your message

  4. Denni 說道:

    Hi Owen 🙂
    Interesting example CISCO. They using social media tools to do the ROI as you point that Blog、Twitter、Facebook、YouTube、Second Life(Virtual Games.)、Flickr。 As people knows Cisco was the producting the internet system and firewalls. The products include Wireless IP phones, wireless controller, wireless positioning software, Catalyst series switches, server products, PIX firewalls, Webex… etc. Do you as know Cisco 2007 acquisition of Internet video conferencing system (WebExy) , there is the article more tell about acquisition WebExy.

  5. eric 說道:

    I think social ROI is far more about measuring the impact of campaigns But this will change – ultimately, we’ll have the tools in place to assign an actual financial value to our social endeavours.

    • chunweiin346 說道:

      I think it takes some skill, and understanding of keyword research, and some good software to help your search engine results, but superlative content on a blog associated with your company website is essential to make potential buyers find.


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