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

How important is business bookkeeping services in your small business?
Published by Matthew Thomas on February 22nd 2012 | Business
Bookkeeping services have helped companies in many ways which in turn helps a company grow. it has t...
 
CHAS accreditation & CHAS services> Please base article around this
Published by Julia Roger on June 18th 2012 | Business
The HSE also have their own risk assessment and policy templates that you can download to either use...
 
Perfect Guidance of Florida PEO services to grow your organization
Published by Morgan002 on March 23rd 2012 | Business
Have ever thought of the criteria to take your business to high peaks? Some strategies which can mak...
 
Various kind of funeral services
Published by Canberra Marketing on December 3rd 2011 | Business
Here are some funeral program ideas for the memorial service of your beloved one. Arranging funeral ...
 
Hire towing services for your car
Published by Kristi Smith on December 30th 2011 | Business
The article is based on the towing services offered through Internet. It throws light on the aspects...
 
Where to find security recruitment services
Published by Janis Buchanan on March 28th 2012 | Business
Security services are very essential for the success of any individual, business or organization. Th...
 
Get Help from PEOs Avail the benefits of the services offered by PEO companies
Published by James Blee on May 16th 2012 | Business
It is not without reasons that more and more organizations are resorting to seek help of PEOs or Pro...
 
When you outsource printer services
Published by Glyn Jones on January 23rd 2012 | Business
When you are to outsource the printing job you are to be very careful with the selection of right ki...
 
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. ...
 
Get premium commercial and residential window cleaning services from credible companies
Published by Mithun on April 12th 2012 | Business
You can find professional cleaning services that are designed to keep your home clean and dirt free....
 
Bring banners to life using the best Large Format Printing services
Published by on June 19th 2012 | Business
You can use Large Format Printing to produce banners for a trade show or order quality printed image...
 
Using Bookkeeping Johannesburg services
Published by James Blee on June 16th 2012 | Business
Bookkeeping Johannesburg companies can be hired as when they are needed to carry out a number of tas...
 
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...
 
Order fulfillment services - its advantages and benefits
Published by Ema Sis on August 23rd 2012 | Business
Fulfillment also known as order fulfillment or else products fulfillment will be it whereby a person...
 
Bluepost coupons enhance accessibility to Bluepost services
Published by James on December 31st 2011 | Business
Bluehost is an American web hosting company that was set up in 1996 and is based in Utah, USA. It is...
 
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...
 
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...
 
Some important reasons to outsource bookkeeper services
Published by Amitaabh Saboo on March 14th 2012 | Business
Be it for focus, professional service, limited responsibility or others, the benefits of outsourcing...
 
Custom clearance is just one of the services that MNS Freight offers
Published by Angie Turner on June 16th 2012 | Business
Based in Sheffied MNS Freight is a large freight forwarding business that pride themselves on the qu...
 
Architectural design services in Washington DC provide by the Forma design
Published by Architectural Design on July 17th 2012 | Business
Now due to the demand of the people lot of public designs houses and buildings as the people have de...