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:
loading
 
  



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:
http://www.articleside.com/marketing-articles/importance-of-social-media-channels-and-measuring-impact-of-social-media-marketing-on-sales-using-high-end-analytical-techniques.htm

Related Marketing Articles Subscribe to RSS

Mercedes repair services in Surrey
Published by Marcos Della on May 11th 2012 | Business
From the routine general car repair services to major car repair, our repair services take care of a...
 
Corporate Agency in India - a Corporate detective agency in India providing services
Published by Microcell Systems on May 21st 2012 | Business
No one can decrease the factor that detective companies have become more and more popular and are pl...
 
Some advantages to using online bookkeeping services
Published by Amitaabh Saboo on February 3rd 2012 | Business
Using online bookkeeping services can be innovative solution for the harried business owner, who do...
 
Importance of shredding services in business organisations
Published by Canberra Marketing on December 3rd 2011 | Business
For any business organisation, or government outfit, keeping paper credentials containing sensitive ...
 
Go for comprehensive packing and moving services by the right company
Published by Ankita Kumari on February 29th 2012 | Business
Shifting from one place to another is not an easy process. It requires huge level of things to pack ...
 
Dental insurance billing services help maximize revenue
Published by Outsource Strategies International on February 3rd 2012 | Business
Dental insurance billing can help dental practices streamline their revenue cycle. Proper dental ins...
 
Why you need the locksmith services
Published by Jacob Stefen on January 21st 2012 | Business
Choosing reliable locksmith is important since some locksmiths might charge additional for attending...
 
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...
 
Get details and systematic moving services for your reallocation
Published by Purushottam Chandra on January 10th 2012 | Business
Packing and moving companies are required in all sectors. They are not only requisite for residentia...
 
Cloud services for backup restoration
Published by Roger White on May 25th 2012 | Business
A fair number of organizations use traditional file recovery utility in combination with cloud servi...
 
Mapping 4 Business provides and range of CIS Mapping services including territory design
Published by Julia Roger on December 26th 2011 | Business
Founded in 2005 Mapping 4 Business is a reputable organisation that provides GIS mapping expertise t...
 
One stop services on moving and transporting is available on economy
Published by Ankita Kumari on January 9th 2012 | Business
We make it possible from planning to shifting support under one umbrella. We have end to end solutio...
 
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...
 
Understanding the services of RV storage Corona CA
Published by Rabbecaanderson on April 22nd 2012 | Business
Some storage you can't access without a card issued. This is as good as long as employees in the org...
 
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...
 
Wonderful Professional services of Heating and Cooling Chicago Companies
Published by David Flambert on August 8th 2012 | Business
The good quality of the air program will also depend on the way these facilities are installed eithe...
 
BPO services in India cover the entire range of corporate functioning
Published by Mark Nicholas on August 17th 2012 | Business
India accounts for a large part of the BPO services and the call centers in India add up to almost 7...
 
Rategenius.com 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...
 
Best companies for reallocation services by movers and packers Noida
Published by Kumari Ankita on July 21st 2012 | Business
Moving from one place to another brings new excitements and hope but along with it, it also brings h...
 
Contact Trademark Registration in Qatar for best services
Published by JCA Trademark on December 29th 2011 | Business
JCA Trademark UAE is intellectual registration service provider. They are reliable way to file your ...