Investment in social networking is expected to soar in the coming years, although firms may be unsure about what they are getting for their cash.

This is according to new research from Econsultancy’s Social Media Survey 2010. The survey discovered that 83 per cent of the businesses questioned said they expected to increase the amount they were spending on social media in the year to come. However, it also found that more than three quarters of firms do not have a return on investment figure for most of their social media spending. In other words – they have no idea whether the spending is actually benefitting them.

It is important that businesses understand that they need to integrate their social media planning into their current channels through including links to online news stories and content on their Facebook and Link-in pages for example.

It is clear that businesses know the potential of social networking to enhance their online marketing performance, but many need guidance on how best to target online audiences. Some 30 per cent of those who responded also said they had a lack of budget to spend on social networking.

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