Apparent in blogs across the web, social media is the PR du jour. Call the notary public, because it’s that official.

But, the concept of social media as some aggrandizing power play we PR agencies have to master for our clients is still, to me, a question to be answered. How much can really be gained by power-tweeting our clients and answering, “What are you doing right now?” every 42 minutes? I wanted to explore this idea to see what social media has (or hasn’t) done.

I set up a survey for my Page One colleagues and found there are some conclusive benefits to stacking a client’s (Tweet)deck with social media. The Survey Monkey results revealed these social media channels yield the best results for clients:

39.9% – BLOGS
33.3% – TWITTER
11.1% – SCREENCASTS
5.6% – VIDEO
5.6% – CONTESTS
5.6% – OTHER
0.0% – FACEBOOK
0.0% – LINKEDIN

My hypothesis is that social media works when it can entertain as well as inform. It engages in a way that traditional media can’t. Seeing a reporter’s snide comment on a news story trumps reading his rendition of a press release when it comes to dishing out opinions. Delivery of information is faster, sometimes funnier, less formal and a lot more in your face.

Twitter, for example, allows people to find their inner prophet. Having actual followers, yes, that’s right… followers… guarantees an audience who will validate your every thought (or so you hope). As humans, let alone PR agents, how are we not supposed to find the advantages in that?

When asked to rank the purpose of social media on a scale of 1 to 10 (10 being most important), my Page One colleagues listed:

9.0 – WEB TRAFFIC
8.5 – GROW COMMUNITY SIZE AND ENGAGEMENT
7.0 – PRODUCT DOWNLOADS
6.4 – MEASURABLE PR
5.5 – REACH NEW TARGET AUDIENCE
5.4 – LEAD GENERATION

So here’s the bottom line. Social media is useful in PR. But it’s not going to completely usurp traditional media. Segmenting social media from its traditional counterpart is as huge a mistake as asking Madoff for investment tips. At this agency, the most successful social media campaigns have intertwined social media and traditional media, because again, what is a video sitting on YouTube without a TechCrunch mention to drive traffic to it?

The future of (good) PR is finding the mix of both. I remain a skeptic about some of the grandiose claims of social media, but I need to better understand how we measure the nominal versus real benefits of social media.

With Google Analytics and a host of monitoring tools, we are getting better at locking in numbers to measure social media. I still don’t think that anyone in social media has gotten close to calibrating those measurements in terms of possibility and percent of market reached. As an economics major, I look (and more easily trust) numbers that reflect not just reach, but penetration. Sure, we can throw parties when we can tell clients we’ve gotten them 1,000 more unique visitors to their site in a day, or even that we’ve managed to increase their web traffic by 313 percent, but I like to look at the macro results. I want to know what the pool of potential targets was. Was it 5,000 or 250,000? And if we reached 1,000, how well is social media helping us penetrate the audiences we’re actually targeting?

I’ll probably be a skeptic supporter of social media until it’s matured far enough to the point where this can be easily measured and assessed. As a CEO or CMO, this is the kind of question I would ask, and though social media is growing quickly, it can’t answer these questions yet. But, it will, and probably soon.

Eight years ago, my old boss, CEO of a largish software company told me, “Craig if you can’t measure it online, it doesn’t exist.” At the time, I was a hotshot marketer, managing PR and advertising. I thought he was wrong, a bit full of himself, and seeing the world through too narrow of a keyhole. He was an engineer with a PhD in computer science that just didn’t get what marketing was about.

Although my old boss made his statement at the end of the dot-com bust, a recession in distant memory, it still resonates with me as I navigate the current economy.

Many firms that are slashing their PR and advertising budgets are boosting their social media spend. Our social media business continues to grow rapidly, far outpacing the growth of our traditional PR services. In fact, the funding for social media projects rarely even comes from the PR budget anymore. Money often comes from product marketing, business development, or a general marketing fund for a project. After speaking to Cisco, Google, HP, Palm, and dozens of venture-funded startups about social media, I realized that in a recession, money follows measurement.

If the CFO puts an axe in a marketer’s hand and forces some chops to the marketing budget, where’s the blade going to strike first? The most vulnerable things are either difficult to measure or are delivering weak results. If there is no life in advertising click-through metrics, a good marketer views the activity as deadwood and chops away.

Here is what I have learned in the last year about metrics and social media.

An effective social media process starts with a definition of business goals and ends with a continual assessment of metrics to support these goals. I’ve found that goals generally fall into three categories:

1. Increase web site traffic – usually to a specific section like the product page, community portal, or blog
2. Increase product downloads – this is usually a key goal if there is a free or community version of the product
3. Increase registrations – companies usually require registration to access support information, participate in a contest or survey, download white papers, access documentation, or get access to product demos.

Marketers are tracking customer behavior on their website more accurately with lead nurturing systems sold by firms such as Eloqua, LoopFuse, or Marketo. They combine these systems with web site analysis tools such as Google Analytics to make decisions on which marketing programs deliver results they care about.

When we roll out a social media campaign, we generally manage five to ten channels of information simultaneously. A typical process involves blog comment management, community blogs outreach, corporate blog promotion, Twitter, YouTube, Facebook group management, and several other message channels. The information in all the channels is cross-linked. For each channel, the metrics are tracked in real-time. For example, on the day of the launch, we look at Google Analytics and social media monitoring tools to make constant adjustments to how the resources are used.

An example of the metrics we track on Twitter include:

• direct referral traffic using Google Analytics;
• number of followers;
• number of @replies by community;
• number of #hashtag uses by community;

• number of keyword mentions by community;
• number of posts by Twitter channel manager (to show we’re working);
• number of retweets.

Using this data, we are able to fine-tune messages to resonate with the target audience.

In the eight years since our discussion, my old boss has made several hundred millions of dollars in his businesses. In the midst of the current recession, I’m just starting to believe that maybe he was right.

If you can’t measure it, it doesn’t matter.

Tired of drafting those pesky press releases? Why not use your blog to break news?

That’s what we did with MokaFive last month for the company’s iPhone Sentinel prototype. The News: Vinod Khosla-backed desktop virtualization vendor launches plug-in for iPhone users to carry a full desktop on the iPhone.

The Challenge: Drive prototype downloads during VMworld – one of the biggest virtualization industry events of the year. With Microsoft’s own virtualization event the week prior and only seven days to prepare, we can generate buzz in the middle of this loud press circus, right?

Right! We skipped the formal press release and hit the blogosphere directly via the MokaFive corporate blog. Why? Rather than reach typical press release outlets, MokaFive wanted to target a very specific audience – cream-of-the-crop tech enthusiasts who would download and test the prototype, then offer helpful feedback on the product.

During VMworld, our news hit The New York Times, CNET, TechRepublic, jkOnTheRun, Life Hacker, Mobile Devices Today, DaniWeb, LinuxStreet and more. Many of the blogs were syndicated, too.

MokaFive’s web traffic quadrupled on the day of the announcement. Life Hacker alone referred more than 2,800 people to MokaFive’s web site. According to Radian6, there were 85 total blogs talking about MokaFive 15-29 Sept; 35 of these were posted the day of our blog announcement. There were also 50 blogs that mentioned “iPhone Sentinel” 15-29 Sept; 30 of which ran the same day as our blog announcement.

MokaFive saw an increase of 273% in visitors to their downloads page. In addition, the MokaFive Player page went from fewer than 50 visits the week before VMworld to more than 8,000 visits during the week of our blog announcement. In addition, downloads from MokaFive’s community site increased by 50%.

Key takeaways:
1) Consider strategies to build up your blog readership so your first blog-only launch is sure to reach your target audience.

2) Messaging and important talking points can easily get lost in the fast-paced start-up environment. While the exercise of writing a press release often helps distill key takeaways you want to communicate, it’s not the only tool for grooming spokespeople. Make sure you always carefully prep spokespeople – with or without a press release – or they may look sloppy in interviews.

3) Don’t expect your blog to do all the work. Consider ways to market your blog to make it visible within the communities you want to reach. Then, get your PR team to pitch like crazy. For example, our top blog hits (NYT, CNET) came from personal relationships and hardcore pitching.

4) Make sure the “news” is worthy. Although Microsoft, Sun, VMware, Citrix, HP, Dell, Red Hat and a variety of startups were making desktop virtualization product and customer announcements last month, MokaFive is the first to move virtual desktops to mobile phones.

If you’re considering using your corporate blog as a platform for breaking news, go for it! If you’re a seasoned PR pro with the right relationships in place, what’s to lose?