Like any form of marketing, social media involves costs and return on investment. It may seem difficult to quantify such an abstract form of advertising. The first step to do this is to obtain a baseline of revenues and cost numbers prior to your exploration into social media. Then, determine the costs involved in your company's participation in such social media in order to calculate your return on investment. (In order to quanitfy time spent in a new business, multiply hours spent creating media by a fair hourly wage.) Next, you need to monitor the effects of social media on your business. You can do this by monitoring the public's comments on your social media outlet, tracking redeemed social media related coupons and tracking this activity on a calendar so you know the exact results by the time period. After a certain period of time (a year, for example,) take another baseline and compare it to the first baseline. If there were no other significant contributing factors, much of the results can be attributed to the social media involved.
What flaws can you think of in this method of quantifying social media? Do you think it is still a viable tool?
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