Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Importance of Social Media Channels and Measuring Impact of Social Media Marketing on Sales using High End Analytical Techniques

By Sandeep Agarwal Subscribe to RSS | January 7th 2012 | Views:

With time the importance of Social Media has grown significantly. Today, the social media has become one of the most important channels for advertising. Here I would like to quote few facts which will strengthen my argument as in how social media channels have grown with time. Approximately 20% - 30% of the time spent online is attributed to social media networking websites. About 80% of the American households use social media networking websites. The growth of average time a person in United States spent on Facebook outnumbers the growth of overall category. Few of the companies have even forecasted that social media marketing spend will hit $3.1 Billion by 2014. This fact had made companies realise the importance of marketing on the social media channels. Today, social media is not only an online medium to interact but has become the lifestyle of the youth. Social media is dominated by major players such as Facebook and twitter but many others are upcoming up with time.

People use social media to interact with people, posting their views about issues as well as to build contact base. Earlier there were traditional method of advertising like digital advertising, banners, pamphlets and mouth to mouth publicity. Companies with time have realized that they can significantly improve their brand value thus sales by creating a buzz through advertising on these channels. So here we want to quote the analytical techniques through which we can measure the casual effect of advertising on sales. Mostly the analytical technique which is used is multivariate regression analysis for the same. To understand the impact of expenditure on sales, firstly we need to identify the independent variables which can impact the sales. Please keep in mind the analysis will be better if the level of data is as low as possible and the data size is huge. To add in few variables can be channel, traffic, clicks, Impressions, followers, expenditure. We also need to take care of factors such as seasonality and macroeconomic indicators such as GDP, unemployment rate. We can run multivariate regression analysis using any statistical software package such as SAS, SPSS etc.

Please keep in mind to care of all the assumptions of the linear regression analytical technique and rectify them in case any occur. There are other ways in which you can see the impact of incorporating Social media marketing on Sales. Suppose you have data for both the period prior to incorporating Social Media Marketing and post period. Then you can analyse the impact using the well-known technique RCT i.e. Randomized Controlled Trial and others.

The basic objective of studying the impact of advertising channels on sales is to understand which channel is providing maximum impact on sales. Also to rank the channels based on order of impact on sales, so that the company officials can optimize the expenditure on the various channels including traditional channels also. Also, we can see by doing continuous study, how the impact of a particular channel is performing with time by simply including a time component in the analysis. So that we can get the idea whether the impact of advertising on a particular channel has reached a level of saturation or still it is in growing phase. This will lead to an understanding of the time horizon till which a particular channel s effective.

This analytical technique significantly helps the company officials to understand how to redistribute expenditure across various channels in order to achieve maximum value in terms of Sales and Brand Value.

Sandeep Agarwal - About Author:
Meltdata Business Solutions is a result oriented, technology-driven full service Market Research and Marketing Solutions provider. Our specialized range of services comprise of extensive end-to-end data collection services, data processing, data analysis and reporting services.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Marketing Articles Subscribe to RSS

Algorithmic Trading in india
Published by Raj Kumar on June 29th 2012 | Business
Algorithmic trading involves the use of electronic platforms in order to enter trading orders with a...
Moving and Packing services makes house moving process easy and quick
Published by Mandymoving on December 13th 2011 | Business
Are you shifting to a new place? Worried about the shifting process? Be placated! Moving and packing...
Using Air Freight services
Published by on July 19th 2012 | Business
There are lots of official procedures and regulations to follow when sending goods via air freight o...
Hi - Tech BSNL Telecom services at Sahara City Home townships across Indiaq
Published by Sanchita Kumari on February 27th 2012 | Business
Sahara India Pariwar is an eminent Indian based organization which is involved in different business...
Moderation services - Website Moderator Responsibilities
Published by Darren Serio on March 2nd 2012 | Business
The Internet has broadened the business field of every business regardless of size. It is one of the...
Professional services from Family Attorneys & Separation and divorce Attorneys Birmingham
Published by Steve Mich on January 10th 2012 | Business
One must take lot of care while choosing a divorce solicitors or family lawyers Birmingham. To choos...
T-shirt printing services
Published by Selinadicousta on March 21st 2012 | Marketing
Las Vegas Screen Printing is very common for a variety of reasons. They are a city that hosts many b...
Try services of best San Diego acupuncturist
Published by Ashish Pandey on April 14th 2012 | Business
San Diego acupuncturists are very famous for the positive reasons. You can try acupuncture San Diego...
Top Accounting and Auditing Firms with reliable services
Published by Auditingfirms Jca on December 1st 2011 | Business
JCA International is a reliable network of accounting, auditing and consulting firm. It is an Indepe...
Are you looking for T Shirt Printing services?
Published by Julia Roger on December 27th 2011 | Business
Here at Advertees we specialise in t shirt printing and we always use the very best materials availa...
Tax preparation services: the things to look for while selecting one
Published by Amitaabh Saboo on January 6th 2012 | Business
To file taxes for your company, regardless of being how large or small is able to be tiring....
Fast and efficient insurance verification services for healthcare facilities
Published by Outsource Strategies International on January 12th 2012 | Business
Fast and efficient insurance verification services for healthcare facilities simplify the workload o...
Joomla web designer services now introduced by Visage Marketing group
Published by Kimberly Penney on May 27th 2012 | Business
If you are looking for the joomla website design you can simply contact the visage marketing group. ...
Upfront Consultants one of the best company, that provide in Orange County SEO services.
Published by Laptop Repair on March 14th 2012 | Business
Orange County SEO famous due to its unique quality in all over it many other companies also provide ...
Key points meant for using the services of the secure printing facilities
Published by Ema Sis on January 17th 2012 | Business
Printing services is among the main formula on the production increase along with advertising phases...
Insight information on web development services
Published by Maya Gupta on June 12th 2012 | Business
In today’s modern world, it is extremely important to boast to online presence along with high ran...
The services provided by a Groundwork London company
Published by James Blee on July 17th 2012 | Business
Groundwork London services tend to be undertaken by professional companies who specialise in all asp... coupons are good to utilize for services or products
Published by Gayathri ChittiDevi on May 11th 2012 | Business
Everybody today is looking to save money in whatever way they can, assuming that you are one of thos...
Water jet metal cutting services
Published by Ajax William on March 16th 2012 | Business
The companies that have to produce products and services are also, consumers. They need capital, in ...
The services provided by a Skills Development Facilitator
Published by James Blee on July 16th 2012 | Business
A skills development facilitator will offer SETA training for people of all ages and all abilities. ...