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Plus Report - By Thomas Baekdal - May 2014

The Mystery of Our Social Traffic

People; we have a problem with social traffic, and it's not necessarily what you think it is. On one hand, our social traffic continues to illustrate rather poor results, but on the other it's critical to your business.

How can this be? How can it both be terrible and essential at the same time? Well, let me take you on a journey through the mysterious world of social traffic. A world that is both deeply frustrating, and incredibly fascinating.

We start our journey by looking at the frustrating reality of social analytics.

It seems, social is responsible for almost no sales

Every other week, a new study comes out trying to quantify conversion based on our different channels. And the result is almost always graphs like the one below:

As you can see, this survey found that social media barely registers when it comes to customer growth. Social, in this case, is a complete waste of money.

Here is another study, from Monetate, looking at conversion rates per channel:

It's the same story. Social media sucks, and email rocks!

It gets even worse when we look at things like Customer Lifetime Value:

And actually, you don't need to look at studies to learn this. You can just look at your own website or webshop. If you look at your conversion channels, social media is usually not that effective.

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Thomas Baekdal

Founder, media analyst, author, and publisher. Follow on Twitter

"Thomas Baekdal is one of Scandinavia's most sought-after experts in the digitization of media companies. He has made ​​himself known for his analysis of how digitization has changed the way we consume media."
Swedish business magazine, Resumé


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