An interesting discussion is emerging about social media return on investment verses evaluation and measurement. Clearly every PR initiative requires quantification. But how do we quantify results in social media? There is a difference between ROI and actual evaluation and measurement. ROI looks at the monetary figure of a change while evaluation and measurement seeks to measure the degree of change.
Currently, there are numerous tools available that allow you to measure the number of hits on your platform, clicks on your links, the number of retweets on platforms such as Twitter or Facebook, your level of popularity on Twitter, etc. But what does this really mean? These tools may indicate your level of popularity but they neglect to present any accurate insights into actual results. Just because someone is clicking on one of your links or retweeting one of your posts, doesn’t mean that the information is actually being absorbed, let alone provoking any change of thought or action. So how do we measure the actual impact of our social media tactics? It seems that before we think look at potential monetary benefits, we should identify effective tools for measurement and evaluation.
Of all the theories that are circulating in the blogosphere, I found the one developed by Don Bartholomew on his blog metricsman most plausible. He develops a three stage measurement process that combines online metrics (web analytics) with conversations and behaviour patterns. It is about combining online and offline behaviour and actions.
Mr. Bartholomew goes on to present an interesting graph depicting these three stages:

From the left, companies or brands control, own or manage websites – corporate sites, FaceBook pages, Twitter accounts, LinkedIn pages and blogs by way of example – and create content that consumers may engage with. This zone is measured primarily by web analytics. In the middle are the actual social networks and conversations between individuals. In this zone we are interested in data sets that cannot be gathered solely using web analytics packages. How often is the brand being mentioned in conversation? What is the sentiment of the comments? How often is the brand being recommended and by whom? Content and behavior analysis, including tracking technologies, are the primary measurement tools in this zone. The third zone represents all the real-world, offline transactions that may be of interest. Did someone visit the store or attend or event? Did they buy a product? Did they recommend the brand or product to a friend over coffee? Primary audience research is necessary to address many of the questions, as well as scan or other purchase data in some cases.
He introduces a new model for measurement which considers exposure (the degree of exposure created to content), engagement (who, how and where are people interacting/engaging with content), influence (the degree to which exposure and engagement have influenced perceptions and attitudes), and action (actions have been taken as a result of the PR/social media tactic).

I think this is an excellent example of a holistic approach to measuring the effects of your social media strategies. This is currently still a major challenge for organisations. As many are frantically trying to get onboard the “social media bandwagon”, they are missing the strategic element of social media. And every strategy must include effective evaluation and measurement.