In recent days, the topic of ROI for pharma social media has again bubbled to the surface.  The angst centers on the fact that many social media efforts are halted based on what is perceived to be a lackluster answer to the question: “what’s the ROI?”  In some cases, the question is designed to trip up unsuspecting agencies and serve as an excuse for squashing any forward momentum.  This comes down to discomfort in a lack of knowledge.  Regulatory, legal and some business executives simply don’t know what social media is, and are scared off by its regulatory implications, that they point to the old stalwart—ROI—as the reason for not proceeding.

(Side note: every one of the above links is worth clicking on for a unique perspective on this topic.)

The debate on ROI for pharma social media has centered on the question of whether or not it is even the right form of measurement.  It’s a topic I have been railing against for months so I will be brief here. One major problem with ROI as it pertains to social media is that it is a lagging indicator. By its nature, it is designed to evaluate the success of a program, in financial terms, at a given point in time (usually the conclusion). There’s a fundamental flaw when you apply that approach to social media.  Social media is not a campaign—it’s an engagement.  ROI does a great job of measuring campaigns, but is a little less concrete when it comes to sustained efforts. When I measure a program, I want to know in process where there are shortcomings so I can adjust accordingly.  ROI fails to provide that ability.  It is useful as a tool to prove value after the fact and move forward. It also should not be dismissed off hand and certainly has a place in the measurement toolkit. Perhaps a better way to approach measurement is something I’ve termed Return on Health (ROH).  When developing an integrated marketing strategy, the first steps are less about concrete numbers and more about establishing a basic decision-making framework. The patient should be at the center of any pharmaceutical social media effort. With the patient at the center, you have established a framework that provides a clear and distinct guide as you seek to engage more actively in relevant communities.  Essentially, it boils down to a simple principle, have an outcome in mind and map your efforts based on how they will help achieve that outcome.

Let me be clear: social media should not escape measurement.  But to rely solely on ROI as the measure of success or failure is insufficient.  ROI is a point in time measurement.  More sophisticated measurements are needed to move the discussion forward when it comes to social media for pharmaceutical companies.