If you are a digital or social media marketer, you must put in a genuine effort to track and calculate your social media ROI, i.e., Return on Investment. By doing so, you will be able to determine the value or worth of your social media campaigns so that you can double the investment on the tactics working well for you and avoid the ones that aren’t. Social media platforms undoubtedly play a significant role in every Digital Marketing strategy to drive brand awareness and ROI. Here in this article, we’ll shed light on the tips and tactics for measuring social media ROI.
Understanding Social Media ROI
First and foremost, we must understand the definition of social media ROI. Like anything that refers to an ROI, social media ROI is the value of all your social media activities divided by the investment made.
The formula to calculate social media ROI is:
Social Media ROI = [(Return – Investment Made) / (Investment Made)] * 100
If the value of your social media ROI is more than 0%, it implies that you are making profits from your Social Media Marketing campaigns. If it is less than that, it means that you are at a loss.
Calculating Social Media ROI
Calculating social media ROI depends on the social media objectives of your brand or business and the metrics you use. For instance, is enhancing brand awareness a priority for your social media handles, is it generating more leads, or is it increasing sales? When we talk about creating ROI metrics, you need to bring them back to the goal and objective of your social media activities to prove value. There are multiple social media goals you can select. The same depends on your core objective – which could be click-through rates, new followers, submitted lead generation forms, conversions, downloaded files, etc. Some essential metrics to help measure your social media ROI are as follows:
It is the most common and valuable metric on social media platforms. It indicates the level at which users interact with your content and brand. According to various reports and surveys conducted by the experts, over a third of content executives use engagement as a metric on social media platforms to gauge their overall performance. The different engagement metrics consist of brand mentions, clicks, shares, and likes.
It is about who sees and communicates with you and your brand on social media platforms. It revolves around the audience size and shares, i.e., how far your content has traveled on social media and is being seen. As a metric, it can be harder to measure than engagement as it only concentrates on the people who saw your content; however, it is still equally imperative to track.
Social media platforms play an integral role in generating significant leads. Therefore, it is essential to know the social media platforms providing leads and the content type driving such leads. For ROI, you must link your marketing campaigns to social media activities, for which knowing your lead count is useful to show performance.
After putting a lot into your social media content and posts, it becomes vital to know the level at which they convert. The most convenient way of doing the same lies in using UTM parameters on the links, which shall help you track clicks on different marketing campaigns and platforms.
Tracking Social Media ROI
After selecting the goal or goals for your social media activities, there is a dire need for you to set up an appropriate system for tracking your social media ROI.
- The most convenient way of doing the same lies in setting your goal or goals on Google Analytics and using its event tracking feature.
- If you are willing to track other metrics, such as brand mentions, likes, or shares, you can consider using platforms like Ahrefs or Buffer.