CorpComms Magazine

Companies struggle to understand social media

Just four out of ten companies fully embrace social media but most businesses are learning 'on the job' how to effectively use the channel to create and distribute content and interact with their target audiences, a new survey claims.

But money is not an object as four in ten companies expect their social media marketing budgets to rise next year, according to the survey of marketing executives at 450 companies worldwide conducted on behalf of Meltwater Group.

Indeed, about one third of companies saw an increase in their marketing budgets for social media, online advertising and email marketing over the past 12 months.

Despite additional funding, almost four in every ten companies claim their ability to fully exploit social media is hampered by a lack of time or resource to invest in the channel, while 23 per cent find it challenging to come up with interesting content and 21 per cent struggle to produce new content.

Three in ten companies claim the most significant challenge relating to social media is their inability to measure its impact on goals while 27 per cent feel they lack adequate tracking or monitoring services. Just one in six companies are confident in their ability to measure social media's return on investment.

Jorn Lyseggen, chief executive of Meltwater, said: 'The challenges that marketing departments are faced with are not about cost. It's about understanding how social media works, increasing their competency in delivering coherent strategies and measuring their impact.'

However, while just over half of respondents view social media as integral to their marketing efforts, just 37 per cent say it is effective at engagement; the most effective channels are viewed as in-person events (61 per cent) and print magazines (56 per cent).

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