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Social media's affect on the bottom line

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Social media has morphed into an outlet for businesses to market their products and services and, consequently, has emerged as a marketing career option. Jokes fly about the office as a career in social media has been dubbed the 'play on Facebook all day' job, insinuating the lack of any real provision to the company's bottom-line.

Next time, one of these jokes wafts through the air of the poorly ventilated office space, remember these reasons social media affects the company's profits.

As mentioned in How to Measure the ROI of Social Media (No, it's Not Impossible!) by Megan Marrs, social media is best for creating what marketers consider 'soft leaders' and is described in the article as the exchange of 'email address for something of value.' Soft leads can come in the form of email request forms for a chance to view a popular newsletter being tweeted around. They can also come from simple social engagement.

Google Analytics is a popular social media measurement tool. Using its resources, calculating the return on investment (ROI) for social media can be easy. Using this free tool, marketers can see whether social media posts have brought potential customers back to the company website. Google Analytics can then determine if those potential customers visited the shopping cart on the company website.

If a successful sale was made, social media served part of its purpose. Of course, measuring social media ROI is much harder for businesses whose sales are not conducted via online check-outs. Scott Matteson explains in detail the ways in which marketers can benefit from Google Analytics in his article Five things you should know about Google Analytics.

Another way social media can have a positive impact on a company's bottom line is the increased exposure of the company's brand. According to the Social Media Examiners Social Media Marketing Industry Report of 2013, 89% of marketers saw the advantage of social media as increased company exposure, while 75% say the second most important advantage is increased traffic across company websites.

According to Social Media Engagement: The Surprising Facts About How Much Time People Spend On The Major Social Networks, social media has become the biggest time consumer of any internet activity. These people spending so much time on social media are companies' potential customers. Potential customers are on social and so therefore businesses should be too, targeting their audience and promoting their brand.

Without customers, businesses don't make money and social media marketers help bring in some of those customers and as such are proven valuable jobs for companies to adopt. Given that the majority of businesses are now marketing online, the competitive process for gaining followers has already begun. You don't want to be late to the race and creating a social media position will surely benefit your company.

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