The problem of ROI and social media
The question of what social media is truly worth really came to a head with Facebook’s initial public offering. It was one of the most striking examples of how a product that does not directly provide revenues can still have a tremendous amount of value to investors. But debates over whether this value is real or merely another bubble have raged on ever since.
In this article by Lux Narayan Lakshmanan, the CEO of a company that tracks how well a company’s brand is doing on social media platforms, he explores the difficulty in calculating return on investment. Much of the problem, he argues, has to do with streamlining all the information you’re collecting into one coherent picture.
The value of a brand is in itself is something that’s always hard to pin down. But social media had added a whole new dimension of difficulty for marketers.

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