In the marketing world, many businesses focus on ROI (return on investment). However, when the business does not obtain the immediate monetary results it desires, the decision makers begin to pull away from social media marketing. This is especially true with ROI during a time of crisis, such as the pandemic.
But, there is another side of the coin called return on influences, says social media marketing expert Christopher Tompkins.
“Many businesses have begun investing more time and money into individuals or organizations who can represent their brand and bring credibility and value,” says Tompkins, founder, head strategist, and CEO of The Go! Agency. His latest book is The Go Method: 22 Simple Steps to Creating a Social Media Strategy That Works!
If you’re spending money trying to promote a product or service, Tompkins says it is essential to be fully aware of your return on investment and return on influence. There are a few things to consider first:
Know how to budget correctly. “So many people think that spending thousands of dollars on advertising will result in a huge win for their company,” says Tompkins.“Yes, more money can result in a greater ROI, but, what if you don’t have thousands to spend in order to acquire new customers? You need to be smart and strategic with what you do have. You’ll want to know as much about your target audience as possible. Don’t waste your money showing your ad to everyone in the world, when you could be showing your ad to just your target audience.”