Will 2010 be The Year for Social Media ROI?

Dec 24th, 2009 by Brett Greene

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About a year ago the big prediction was that mobile platforms were going to break out in 2009. Their influence grew, but outside of Asia, the world is still way behind in utilizing the full potential of what’s available now for mobile computing much less what’s around the corner.

The latest 2010 breakthrough prediction is that next year is the year that social media ROI will finally be measurable. This will be a great leap forward for advertisers if it comes true. It will also solidify the shift from traditional media domination of ad buys over to a large increase in those funds moving to work with individual online influencers.

My company predicts that, based on our extensive research, 2011 will be the Year of The Influencer. Therefore, it’s not a surprise that I agree that 2010 will be the year that social media ROI can finally be measured. One reason why I expect that to happen is that we’re one of the companies working hard to build the structures to make it happen.

Aside from that, the biggest question about social media in 2009, especially from people new to the field, was “what’s the ROI on a social media marketing campaign?” The analytical tools like Klout, Radian6, Twitter Grader and Filtrbox are getting sharper by the day in measuring online influence in ways that actually matter to answer that question.

Brands are just starting to seek out channel partnerships and influencers who can be brand advocates. In the last six months this space has become white hot and is currently in it’s infancy.

Remember that ‘Twitter’ was declared the most used word in 2009 and ‘influencer’ may be on it’s heels for that title in 2010 or 2011. When those two words create the return on investment everyone’s looking for, then the evolution of media power from traditional media to social media will begin it’s second phase fueled by multiple models of profitability.

Tags: analytics, brand, brand advocate, branding, channel partner, filtrbox, influencer, influencer marketing, klout, mobile, mobile media, online influencers, radian6, ROI, social media roi, soical media analytics, trends, twitter, twitter analytics, twitter grader, year of social media roi, year of the influencer

Posted in Consumerism, Social Media

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171115 Responses2009-12-24+07%3A30%3A44Brett+Greene to “Will 2010 be The Year for Social Media ROI?”

on 24 Dec 2009 at 4:46 pm1Joe

It'll certainly be interesting to see if some of this stuff sticks around long enough to have a measurable impact. Even things that I currently use everyday would not be missed should they leave. The basic tools such as IM or email would be missed, but services that are built on top of or around them would not be.
on 24 Dec 2009 at 4:47 pm2Joe

Oh woops, lost some of my comment.

Whenever I hear of influencers, I am always reminded of an idea in Charles Stross' book, Accelerando. An individual's popularity is bought and sold on the stock market like any other commodity. Pretty interesting idea. Bring on the future!
on 24 Dec 2009 at 6:24 pm3brettgreene

Most likely the things that don't last will morph into better versions of their basic technology, don't you think? Somehow it keeps getting better.

The new influencer economy will be interesting. Some knuckleheads will (and already are) be blowing it by trading in the trust they've built for fast cash. But there will be plenty of others using their connections to others who share their passions to do the right thing and be major positive forces in their communities. That idea from Charles Stross definitely rings true too.
on 24 Dec 2009 at 6:45 pm4Joe

It sounds like you're trying to turn influencers into role models. In some case I suppose they would be but I don't know that it'd be a universal thing.

I just thought of teachers. Where would they fall. Certainly they influence people every day and they interact with the most tech savvy group consistently (a younger generation). But would they be influencers in this sense? I guess I am interested in the real definition of an influencer in this specific sense and not just a generic sense.
on 24 Dec 2009 at 7:35 pm5brettgreene

Maybe I miscommunicated my point. The idea isn't turning influencers into role models. It's that they are people who are passionate about a certain topic and connected to a community that values them.

So someone like Dave Taylor who has an audience that trusts that he will give honest reviews of products has more earned trust than a brand or a person who hasn't proven themselves to consistently do the right thing. If you read a gadget review from Dave he'll tell you what's both good and bad about the product even he's getting an affiliate commission or some other perk. He's not a role model, but he does influence people in his community.

The key to whether a teacher is an influencer isn't based on her knowledge or teaching skill, it's based on how much trust she's earned with the students. She can live like a rold model in general, but not build trust in areas that are important in the kids eyes to their relationship with her and she won't be an influencer.

So, IMHO, you can be an influencer and not be a role model, and ou can be a role model and only influence others in some ways or sometimes in no ways. Someone may look up to role model and still choose not to be persuaded by their influence.

Jie, thanks for taking this conversation deeper.
on 25 Dec 2009 at 4:54 am6Tweets that mention Will 2010 be The Year for Social Media ROI? | The Real Blind Influence -- Topsy.com

[...] This post was mentioned on Twitter by Randy Kemp, craigvickery. craigvickery said: RT @randylewiskemp: Will 2010 be The Year for Social Media ROI? http://bit.ly/80Riv4 [...]
on 28 Dec 2009 at 11:48 am7Will 2010 Be the Year of Social Media Roi? | the Real Blind Influence

[...] Aside from that, the biggest question about social media in 2009, especially from people new to the field, was âwhat’s the ROI on a social media marketing campaign?â The analytical tools like Klout, Radian6, Twitter Grader and Filtrbox …This Post [...]
on 29 Dec 2009 at 3:52 pm8Mike McClure

Brett:

Good points! Everything I've been reading about Personal Branding dovetails nicely into what you're saying about influencers. As more individuals are able to create personal brands that rival corporate brands, their influence will grow. As a professional in the field, I look forward to being able to show measureable ROI for something I already believe our clients need to be doing!
on 05 Jan 2010 at 6:57 am9brettgreene

Thanks Mike. 2010 is going to be a tipping point year for social media an influencer marketing. They were extreme changes in the communication, internet, advertising and marketing worlds the past three years and now they're going mainstream.

Along with ROI being more measurable, Return on Influence will begin to be valued a t much deeper level. It's an exciting time where individuals have a lot of power to affect massive changes even if they are low on resources to get started.
on 05 Jan 2010 at 5:21 am10Heidi Cuppari

hey brett! didnt i just meet you at the Newman's on New Years Eve!??

I just found you while doing research on I4C and found your Huff post entry about it.. I totally agree about influencers and personal branding.

The new way to market anything today is to add value and provide FREE content to people who you want to bring together in your community. you build trust by providing great tips, tools, reviews, etc.. and then people just start coming to you with business opportunities or wanting to purchase your product or service or book, NATURALLY, and transparently.

It is SO much more than whatever you are 'selling' at the time b/c you can turn it into something so much bigger than yourself, which the purpose should be.

If you put your intentions TRULY on being an expert in your area of passion, and helping others learn about it, the rest will flow beautifully.
on 05 Jan 2010 at 7:00 am11brettgreene

Yes, we met at the Newman's party. Thanks for taking the time to comment.

Trust and influence are the 'new black' of marketing and advertising and everyone will benefit from the newer ways of doing business. Sharing is the new selling. I couldn't agree with you more.
on 07 Jan 2010 at 12:04 am12Lauren Vargas

It is not just finding your influencers, but discovering how they connect and mapping those conversations across multiple channels and communities. Monitoring and listening is just the first step. I think in 2010 we will see radical new developments in how we map these conversations and use the feedback to impact business decisions. Thank you for the shout out!

Lauren Vargas
Community Manager at Radian6
@VargasL
on 07 Jan 2010 at 1:18 am13brettgreene

Thanks for the comment Lauren. Everyone I know who uses Radian6 has great things to say about it. My company is a lead investor in Klout, but I don't play favorites and like to give props to all companies doing great work.

I've had great conversations with @ambercadabra and some others at Radian6 and love your tool.
on 07 Jan 2010 at 2:49 pm14Lauren Vargas

Thank you, Brett! Doesn't matter who uses the tool…we will always chat with those who bring great topics to the table!

Lauren Vargas
Community Manager at Radian6
@VargasL
on 12 Jan 2010 at 11:02 am15Looking Back and Looking Forward « Scott’s Marketing Blog

[...] analyts think 2010 will be the Year of Social ROI. I’ve been working on metrics and analytics this past year and with the belt-straps [...]