I thought I've already well known about social media, but through this week's sixdegrees reading, I realized that I missed some important point. That is, relationship between social media and ROI (Return On Investment).
Many companies use social media..then for what??
And how can companies measure ROI of social media??
The profit through using shared social media (blogs, video clips, twitter, YouTube etc..) is hard to measure by specific number and visible effects.
To make these ROI be seen exact numbers, I think technology is the most important.
Many companies like google already invent some tools to measure their activities into graph or some images, but in some cases I think they just show visitors' number or total number of page views. I think these things are not connected to ROI directly.
Through this advanced technology, companies can show its effectiveness to their investors.
Social media's main purpose is to communicate with their customers. Using social media company can share their information with customer.
Also certain customer's feedback can be shared with other customers. So social media is the most important tool to promote company's products and company itself.
That is PR 2.0!!
But if company just use their social media to make a profit, then soon smart customer would recognize that. Therefore companies try to have a conversation with their customers sincerely.
This linked YouTube video explain the social media and its effectiveness by using very easy example.