To Social Media or NOT to Social Media

That is the toughest challenge facing SMBs today. Social Media demands your time. Will you receive the appropriate ROI? That is exactly the question that Marketing Sherpa’s 2010 Social Media Benchmark Report examines. (Zebworks Social Media Master Class takes it one step further and shows you how to do it cost effectively.)

According to the report SMBs have already stuck their toes in the water. "In the year ahead, we see social marketing maturing to the point where a majority of organizations will be in transition from the trial phase to the strategic phase of the learning curve. We see marketers first researching the medium (starting with resources like this report) and monitoring audiences to determine realistic objectives, then formulating tactics and implementing tools for accomplishing those objectives, " writes research director Sergio Balegno in the report's summary.

Examining social marketing investment by industry, retail social marketing budgets have risen 79% from 2009 to 2010. Your competition is up to their necks in social media and that means it is more important than ever to carefully incorporate social marketing into your small business marketing budget before the marketplace becomesmorecrowded. 60% of business expenditures on social marketing goes into human factors, showing a move towards bringing on dedicated staff to handle your social media presence.

The report takes a look at how organizations plan and measure the implementation of their social marketing strategies. Organizations are able to increase their return on investment in the form of higher Web traffic, lead generation and sales revenue when their social marketing strategy has matured to the strategic phase. By increasing investment now, your business stands to gain tangible benefits in the near future from a more mature social marketing strategy.

Also of interest is an assessment of how consumers interact with businesses on the Web. People with the most connections made over the Web tend to use social marketing to learn about new products direct from the source. They are interested in getting to know the background of a company, from environmental responsibility to work policies, before they actually purchase a product. If your business is trying to reach more connected consumers on the Web, it is important to maintain transparency and openness about your business affairs to be seen as trustworthy.