Measuring ROI 'can be difficult'

Many marketers are unwilling to utilise social media advertising due to their inability to measure return on investment (ROI) in this area, it has been suggested.

According to Marketing Sherpa, difficulties gauging the success of using this form of lead generation is one of the "most significant barriers" faced by firms considering adopting social media as a viable sales technique.

Measuring ROI requires the analysis of two factors - investment cost and income returned - the news source noted, with the ease with which the two factors can be calculated helping to contribute to the perception that the method is accurately measurable.

And including qualitative factors, such as comments left by users, is key to accurately measuring ROI, as firms that fail to do so "may find themselves employing [far] less effective tactics" that can result in "a loss of confidence in performance" in the marketing sector.

In related news, industry expert Justin Rees recently told Mortgage Solutions that planning is crucial to a successful lead generation strategy.

He also urged companies to seek out a "reputable" provider and employ good lead management techniques, something that IT firms looking to expand their client numbers in the current economic climate may wish to consider.

Written by Julian Poulter and Copyright "Selling People 2009"