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When pressed for a quantifiable ROI on social media, Gary Vaynerchuk equates it to calculating the 'ROI of your mother.' He argues that the most foundational elements of success—like brand equity or instilled confidence—are impossible to measure directly but are responsible for all subsequent results and therefore hold the most value.
Most marketing budgets are misallocated to top-funnel (awareness) and bottom-funnel (conversion). Vaynerchuk claims the greatest ROI now lies in the mid-funnel—organic social content, podcasts, and communities—where brands build the trust and consideration that actually drives purchase decisions.
Instead of getting defensive when asked for metrics, social media managers must proactively educate leadership on how social works. Frame it as a strategic brand channel, show examples of success, and explain the long-term vision. When the strategy works, its value becomes self-evident and measurement questions fade.
The idea that brand is unmeasurable is a lazy excuse. Frame "brand" as a synonym for "reputation" and use health tracking tools to quantify it. To influence leadership, speak their language by presenting data and communicating the long-term payback horizons for your investment.
Data shows that adding brand marketing to a performance-driven engine can increase median ROI by 90%. The persistent tension between brand and performance stems from short-termism and the allure of easily measured clicks, creating a false dichotomy between two essential functions.
Marketing operates like venture capital, where a few massive hits, like American Express's "Member Since," generate most of the long-term value. However, it is held accountable for every penny of cost while only getting credit for a fraction of the long-term upside, creating a fundamental misalignment in how it's measured.
Marketing's value, like brand fame, compounds over time and is probabilistic. Finance departments, however, wrongly apply simple, linear math (addition, subtraction) and demand immediate ROI, killing long-term initiatives that require time to pay off.
Financial models often dismiss intangible assets like brand fame because their value is incalculable. This leads to a systemic undervaluation of marketing's long-term contributions, as any asset that cannot be neatly entered into a spreadsheet is effectively treated as having zero value by a finance-dominated culture.
To sell leadership on brand initiatives with indirect ROI, translate organic performance into paid media equivalents. Calculate what the millions of impressions from a viral video would have cost via paid channels. Frame it as a cost-effective way to build brand and lower overall CAC.
While being data-driven is good, seeking a precise mathematical ROI for every initiative is often a fallacy. Many outcomes result from numerous touchpoints (marketing, product, etc.). Obsessing over perfect attribution is unproductive and leads to inter-departmental conflict.
Instead of chasing perfect attribution, recognize that customers will explicitly tell you how they found you. At Drift, prospects on sales calls would frequently mention being fans of their podcast. This qualitative data from the front lines is often the most direct and powerful measure of brand impact.