The truth is there is not specific formula related to Social Media Marketing. Just as there is no specific formula for TV, Radio, Billboard, Yellow pages or most other types of advertising.
There are many things that affect the effectiveness of all types marketing such as ad quality, desirability of service, need for service, timing and location just to name a few.
Rather than attempting to figure out an exact dollar amount on your investment I believe a much better question to be asking would be: Is investing in Social Media Marketing going to benefit your business?
The answer: Yes.
You being where your customers is, engaging them on their turf, and capturing their top of mind awareness will benefit you. The statistics prove it.
Digging one step deeper I understand that for many business they feel as if they don’t have any additional budget or resources to invest in Social Media Marketing and for that reason they feel the need to come up with some sort of ROI where they can show that it out preforms the other types of marketing they are doing.
For those businesses might I suggest that instead of trying to find new budget and resources, you simply reallocate some of your current budget and resources. If you have a lot invested in TV marketing consider taking a percentage of that budget and reallocating it instead of trying to get new resources.
TV marketing is getting less and less effective as DVR’s take over and people skip commercials that companies are spending millions on.
Yellow pages is becoming less and less effective as people turn to Google Places and Facebook Pages for phone numbers and addresses of local businesses.
Billboards only reach people in one location at one point in time where as social media is focuses on getting you in multiple places at multiple times.
On and on the list goes. It doesn’t take a genius to see where things are going. Companies who ignore Social Media Marketing are going to see a slow decline in business, while companies who invest in Social Media Marketing will see an increase.
If you’d like more resources on social media marketing please visit the Be Sighted Social Marketing website.