Social media ROI is a valuable metric that can be used to determine the success of your social media marketing efforts, and whether or not they’re worth the time and money you’re investing in them.
Social media is an integral part of any marketing strategy. It has proven to be a strong tool for building relationships with customers and helping to establish your brand identity. But the question remains about whether or not social media platforms such as Facebook, Twitter, Instagram, etc., are worth the time and money you put into them. This article will detail how you can calculate your social media ROI and find out if it’s worth your while to continue investing in social media marketing.
In order to measure the ROI of your social media marketing strategy, you will need to calculate how much time and money was spent on your social media campaign. This is a relatively straightforward process. In this article, we will cover how to go about it in detail.
The Basics of Social Media ROI
To calculate your social media ROI, you will need to measure your social media efforts. This includes measuring the following:
-The total time spent on a platform
-The number of followers
-The number of posts
-The number of likes and comments per post
-The number of shares per post
-The total amount of money spent on ads on that platform
Once you have these numbers, it will be easier to determine if the ROI is worth continuing. The total hours you spend on a platform does not directly translate into an increase in revenue for your business. However, if you see an increase in followers and engagement (comments, likes, shares), this could be a sign that the increased or continued investment would be beneficial for your business’s growth. When evaluating if it’s worth continuing to invest in a specific social media outlet, take note of how many times people engage with your content and what they have to say about it. If there are any glaring issues with the engagement (likes/shares are low), then you may want to rethink your strategy or change what platforms you focus on.
How to Calculate Your Return on Investment
First, let’s define ROI. ROI is the percentage return on your investment. You can calculate your ROI by dividing the revenue generated from your social media marketing campaign from an advertisement by the total cost of running that advertisement.
Return on Investment = (Revenue Generated from Advertisement)/(Cost of Advertisement)
For example, if you spent $30 for 100 clicks and you made $1 per click, then your ROI would be 3%.
Here is a nice website that explains ROI in more detail. This website also has calculators that you can use to help you calculate various forms of ROI.
How to Calculate the Cost of Social Media Marketing
One of the first things you’ll need to do is calculate your cost. This will include labor costs, which may include hiring social media managers and designers, as well as the cost of any tools you use to manage your social media marketing efforts. You’ll also need to familiarize yourself with the costs associated with any third-party platforms you use for your social media marketing, such as Facebook or Twitter Ads. If you’re using a third-party social media management tool, it’s important to know how much that will cost you. There are a number of free options available, but those typically have limited features and aren’t tailored to fit your needs specifically.
The first step to calculating your ROI is figuring out your results. This will depend on the goals you set when you started investing in social media marketing. For example, if you wanted to increase awareness of your company by 10%, then you’ll want to track views of your posts, impressions, and engagement with likes and comments. However, if your goal was to generate more leads for your business, then you would need to track the number of clicks on your ads as well as the number of people who signed up for a newsletter or contacted your business after viewing an offer on social media.