Study Shows: High Social Media Engagement Reaps Financial Benefits
July 22, 2009 Leave a comment
Recently a study was released by Wetpaint and the Altimeter Group, demonstrating that the brands who are engaging in social media are seeing more financial success than those companies who are not. The study focused on 100 companies listed in the 2008 BusinessWeek/Interbrand Best Global Brands survey and mainstream social media platforms those brands use. Example social media sites include Facebook, Twitter, blogs, wikis, and forums.
The study created an “engagement scale” and then came up with a numerical range from 1 to 127. Next, they placed each brand into one of four categories based on depth and width level of engagement and how many marketing channels they were actively using.
The most engaged brands saw revenue increases over the past year of 18% (even in a down economy) and the least engaged brands saw negative 6% revenue losses.
This study appears to show that activity in social media has financial payoff. The most-engaged brands are substantially outperforming their competition across a number of industries in both revenue and profit performance.
The Engagement study can be found in its entirety here. In addition, a website has been set up to help companies compare their social media efforts with the top 100 companies named in the study.