Noticed a study on Social Media Spending on Prospero's website saying 88 Percent of Businesses Expected to Increase Social Media Spending in 2008:
"....Prospero’s 2007 Social Media survey was conducted online in September 2007, gathering responses from over 50 businesses currently using social media applications, including organizations from the following industries: Broadcast Media, eCommerce and eCRM, Education, Financial Services, Health, Manufacturing, Online Media, Print Media - Magazines and Books, Print Media - Newspapers, Professional Associations, Sports and Gaming."
"...Asked about social media return on investment (ROI), 35 percent reported positive ROI and 41 percent said that ROI was “unknown.” Responses to questions about how web marketers measure ROI reveal that direct sales revenue is not a top measure for determining social media success. Respondents said that total number of site visitors (17 percent) was the most important criterion for assessing social media performance. Total number of page views and number of subscribes / community members (15 percent respectively) were next, followed closely by length of visit on the site (14 percent)."
According to the Prospero study traffic to social media site is the most important determiner of ROI (which suggests investment in Social Media is advertising driven, perhaps more than it should be).
On the other hand, Brand "engagement" (which has not been formally defined - my committee at the Web Analytics Association is working on a formal definition of visitor engagement for Social Networks and Virtual Worlds) is the main measure of success for Social Media Spending; to me, that would include spending on Virtual Worlds, like Second Life.
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