Social Media ROI

Lots of buzz about how measurable internet marketing is. Why then is the return still so low compared to traditional direct? I finally found the hard data this morning. Over 50% of MarCom budgets are spent on Direct. Mail STILL enjoys the best ROI. Email is dismal in comparison. The only channels with a lower ROI than email, are mobile and social media.

I suspect the reason is that most businesses trying new channels - because they are so cheap, quick and dirty - are doing a terrible job at it.

They are shouting rather than listening, hawking rather than offering. Companies using Twitter, Facebook and Email campaigns need to take a page from companies doing it right: Zappos, Amazon, IKEA, etc. You don't need their budgets; you need their smarts.

Coincidentally, I received Godin's new book via FedEx today; Linchpin may provide some of the answers.

If you have questions about your company's efforts, post them here. I'll be launching a marketing troubleshooter blog on this space over Reading Week in March. Stay tuned....