Some marketers are skeptical about social media’s return on investment. They know that posting on Facebook or running a fan advocacy program helps increase their reach, but how do these activities translate to money in the bank? We’ve put together a quick guide here to help you determine social media’s ROI. Calculating Your Social Media ROI
Calculating Your Social Media ROR
Figure out what you want.
Do you want to drive sales, increase clicks on your digital pages, or gather data? You need to keep your objectives in mind when calculating your ROI since they’re the basis of your entire judgment. You can’t measure success without first defining what that success is.
Using the dashboards for social media platforms, track how many people view your content, click on your links, or purchase your product. Facebook gives its advertisers access to a plethora of metrics, as does SocialToaster’s client dashboard. Measure the number of people who fulfill your intended objective (conversions), and use tracking tools to determine if they did so from your social media campaign.
This combines the first two steps. For instance, if your campaign was aimed at bringing people to a landing page, then you’ll have to ask yourself 1) Did I see an increase in page views? and 2) Was this increase generated by my social media marketing efforts? If the answer is yes to both of those, then you’ll need to ascribe a monetary value to these goals in order to determine the value of your campaign.
Let’s say you’ve measured results, and your social media campaign has generated $1,000,000 in sales. Great! If you spent $500,000 on your campaign, then you have a 2:1 ROI, or two dollars earned for every dollar spent. Were you spending more on your other advertising efforts? Were you generating the same revenue? Consider your costs, both past and present, to determine the value of your social campaign.
Social Media Is Complex
There’s no be-all end-all formula to magically calculate your social media’s ROI, but SocialToaster is full of social media experts. Take a look at how our platform works or drop us a line if you’re interested in increasing your marketing ROI today!