You need to know how to track and calculate social media ROI. This will show you your social media campaigns’ return on investment (ROI) in dollars, euros, or yen. You can then double down on the strategies that work and eliminate those that don’t.
Social media is important to any marketing strategy to increase brand awareness and ROI. It is becoming more popular as shoppable posts and social commerce become a reality.
This blog will show you how to measure ROI and give tips on improving it to increase the value of your social networking activities.
What is social media ROI?
Let’s first define social media ROI. It’s like any other return on investment. It’s the sum of the social media activities and the amount invested.
Here’s how to calculate the ROI of social media.
How can you calculate the social media ROI?
The objectives of your company and the metrics used will determine how you calculate ROI. Download our social-media campaign ROI calculator to keep track of your goals and costs.
So, for example, do you prioritize brand awareness, lead capture, or sales when creating your ROI metrics? To prove your value, you should link your ROI metrics back to your objectives and goals when creating them.
You have many options when it comes to social media goals. It all depends on what your core purpose is, which could be:
Followers are welcome
Click-through rates
Conversions
Completed lead generation forms
Downloaded files (e.g. eBook, whitepaper)
These are some common metrics that can be used to measure social media ROI:
Engagement- One of the most valuable and common metrics, engagement on social networks, shows how people interact with your brand and content. Altimeter research showed that more than a third (33%) of content executives use engagement to measure performance. There are many engagement metrics, including clicks, shares and likes.
Reach – This metric measures who interacts with and sees you on social media. It measures audience size and shares. It also looks at how much your content is shared and travelled. This can be more difficult to measure than engagement because it only measures how many people saw your post. However, it is important to keep track.
Leads – Social media is a key component of lead generation. It’s crucial to understand which channels and what content drive those leads. You want to know your lead count to demonstrate your ROI.
Conversions – It’s crucial to track how your posts and content convert when you invest so much time in social media. UTM parameters are a great way to track clicks per campaign and platform.
How can you track ROI in social media?
After you have chosen a goal for your social media activity, you need to create a tracking system to track your ROI.
This is the easiest to do in Google Analytics. This can be done by setting goals and event tracking. To understand what’s involved, .
You can track other metrics such as likes, shares, and brand mentions using platforms like Ahrefs or Buffer.
This video will show you how to use Google Analytics if you are new to it.