Today, there are 3.5 billion people on social media around the world, making it the most significant network for news, networking, online activities, and for brands to promote their offerings. Just in 2019, the social media ad spent was recorded at €82 billion and expected to increase by 8.7% annually. The biggest player in the social media industry remains Facebook for over a decade now. Nonetheless, YouTube with 2 billion and Instagram, with over a billion users are as essential as Facebook when drafting a social media strategy. Twitter and LinkedIn have a limited impact because of their brand positioning of being a micro-blogging and recruitment/networking website, respectively. Therefore, cost per result is quite pricy on these two platforms due to the demand and supply constraints. Facebook has a more diverse userbase, thus making it a leader with 2.5 billion active social media users per month.
Social media will remain an integral part of any business journey in 2020. The spending on advertisements will be intuitive but mostly a data-driven decision. Whereas, Start-ups and SMEs with limited data of their owned channels will struggle to plan a comprehensive social media strategy. Therefore, In this article, we have compiled social media metrics that will matter the most to those businesses.
REACH & THE RELEVANCE SCORE
Reach is the most common yet most assuring metric when it comes to measuring the results of online advertisements. Firstly, let’s get acquainted with what reach is, it is the unique number of hits on a post. It means when a single user looks at the advert, the reach will be marked once. Even if the user keeps seeing the advert multiple times, the reach will remain one. But the impressions will increase as per views because this metric is free from unique hits.
This metric is important because it is a good indicator of how the target audience receives the content. The reach of an advert will increase if it has a higher relevance score, which depends on the quality of content and delivery. A relevance score is THE most important metric because it has a direct impact on content performance and the cost per result.
ENGAGEMENT RATE/ ESTIMATED AD RECALL LIFT RATE
Each piece of content that publishes on a brand’s owned channel will have people liking, commenting and sharing that content which is known as engagement. Engagement on its own might make little sense to the business. Therefore, the engagement rate [(Engagement/Reach)*100] is a more precise metric in analysing a content/post/advert performance.
Social Media is a two-way communication platform, where you get instant response/reaction from your target audience. If the target group doesn’t respond to an advert, the cost per result will be higher with low Estimated Ad Recall Lift Rate. This metric refers to the target group percentage that can recall the advert in two days.
A must-have metric that all businesses should track in 2020. It records the reaction of the target audience towards owned content. Breaking down the into three prime indicators Positive, Neutral and Negative. Sentiment Analysis gives brands insight on content performance and sentiments towards its products or services.
When running adverts on social media, budget allocation and optimising are crucial. Promoting campaigns or posts that are not performing well will decrease ROI. Instead, utilise the budget on campaigns with positive sentiments. However, to fully understand this metric, the onboarding of a social media analytics tool is necessary. Unfortunately, social media platforms do not give such insights. Also, it is vital for social media PR, monitoring, and maintaining an excellent quality score of the brand page.
COST PER RESULT
At the end of every campaign, the businesses will look to asses the return on investment. The budget must align with the objective and meet the estimated cost per result. Although, it differs from objective to objective and social network to social network. For instance, advertising on Facebook and Instagram, the Cost Per Result (CPR) will be lower from engagement. On the other hand, CPR will be higher for link clicks because of the call to action insertion.
When it comes to the likes of Twitter and LinkedIn – you are looking at Cost Per Thousand Impressions (CPM) and Cost Per Click (CPC). Businesses billed on CPM, pay for adverts that receive a collective thousand impressions and not unique hits. Whereas, CPC deducts advertisers spent with each click by a user browsing the ad. To ensure that the Cost Per Result (CPR) is optimised all metrics need to sync accordingly. It will drive down the CPR, while the adverts receive a higher reach and engagement rate.
In the coming days, we will publish a continuation of this article which will highlight key YouTube metrics. Also, we will touch upon those social media metrics that are important for the eCommerce industry.