Social channels deliver better ROI, study says

Social channels deliver deeper consumer interactions and provide marketers with better ROI than traditional media channels, according to a study conducted by social marketing firm Crowdtap and marketing consultant Joanna Seddon.

“Social channels outperform when we look to apply qualitative metrics to media by looking at the actual effect on consumers and lift,  said Brandon Evans, CEO and founder of Crowdtap.

Evans said social interactions provide lift for such key performance indicators (KPIs) as brand equity, favorability, familiarity, brand advocacy and purchase intent.

The so-called "Brand Influence" study, published August 3, also found that online banner, TV and magazine advertisements were less effective than sampling, house parties and online discussion groups.

“You've got to understand people's reactions to every medium,” said Evans. “How enjoyable and memorable is the experience? Consumers may pay attention to a commercial, but if they don't trust it, that factors in. If a message is delivered in a much richer environment, it will score higher.”  

Evans does acknowledge that social, real-world interactions may cost more to produce, but in the end the benefit could potentially provide better ROI.

Social interactions can be three to four times more beneficial when integrated between on- and offline channels, according to the study.

The Brand Influence report examines four case studies from the hygiene, fashion, beauty and snack food verticals. The study utilizes a cross-channel marketing metric devised by Crowdtap and Seddon that measures quantitative and qualitative KPIs for marketing campaigns.