Marketing Theories Applied, And Calculations Essay

1630 WordsNov 3, 20167 Pages
Marketing Theories Applied, and Calculations Return on Investment with Social Media Marketing While these mobile opportunities were enticing, Ms. Bornstein still had to make a business case to Suliteanu. It would be necessary to define key metrics to measure the success of social media, video, and mobile for 2011 and beyond, as part of her long-term strategy for Sephora’s online media spending. To measure its return on investment, Ms. Bornstein reviewed a Third Party Social Media Evaluation Framework (Ofek & Wagonfield, 2012, Exhibit 14). Using this framework, Ms. Bornstein could measure the current investments Sephora was making in its social media and make three key arguments in her proposal. First, Sephora successfully generated a wide range of interactions with its social media (See Appendix, Exhibit 1). According to the third party, consumers could be sorted into three categories based on their levels of engagement: Advocates, Followers, and Searchers. Using a conversion rate, Sephora can see clearly that its social media participants turned into buyers. Ms. Bornstein must direct her attention to these metrics as they provide the most straight-forward return on investment numbers for Sephora’s social media outlet. Second, Ms. Bornstein already knows the value of its Facebook followers. Sephora entered the Facebook scene in 2008 by creating a Facebook Fan Page. By 2009, it had 300,000 followers and by September 2010, it had 812,000. Based on the analysis of an
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