Quantifying ROI on social media is a challenge in itself, especially when it comes to organic results. Measuring Social Media ROI (return on investment) is a critical part of any social media manager’s job. It allows you to better understand the effectiveness of your work, demonstrate value to the organization and improve your strategy over time.
But let’s start from the beginning.
What is Social Media ROI?
Social Media ROI is a metric that shows the value generated by our social media investment. ROI is usually measured in monetary terms. However, in cases where the direct impact on income is difficult to attribute to a specific activity, ROI can also be quantified with non-monetary indicators.
For example, if the goal of a paid social media campaign is to increase brand awareness, ROI could be measured by growth in followers or impressions.
The metrics used to quantify Social Media ROI for your business should depend entirely on your goals.
Of course, the question arises why measure ROI on social networks, especially if it is about organic content?
Social Media marketing is becoming increasingly competitive. In order to stand out in the sea of all those competing for the audience’s attention, increased investment is required, not only in content production but also in paid advertising. Regardless of whether you based your strategy solely on investing in the production of high-quality content or your strategy also relies on paid advertising, evidence that your strategy produces tangible results will be expected, and this is where ROI comes into play.
Practical application
The analysis and results of your investments help you justify budget requests by showing the value of investments, whether in production, if we are talking about organic content, or in advertising. If your ROI is low, on the other hand, it can help you identify inefficiencies in your social media strategy and make improvements. This shows the importance of measuring ROI for both business and channel growth.
It’s easy to calculate ROI for paid social media campaigns that can easily be attributed to revenue (for example, paid e-commerce ads). But things get a little more complicated when it comes to investing in social networks that deliver less tangible value.
As we have already mentioned, ROI can also be quantified by non-monetary indicators, for example, the increase in the number of followers, the number of interactions, and the like. It is important that before determining ROI, we have clearly defined goals during the implementation of the overall strategy.
For example, let’s look at what metrics you should track depending on the set goals.
Now that it is clear what and how we can measure in order to define the success of our performance on social networks, we are now working on additional improvements. And any improvement in social media ROI starts with social media optimization (SMO). In practice, this simply means investing where you can get the best possible results in return.
Creating a successful social media presence strategy can be challenging, so you’ve come to the right place if you want a strategy that will provide results with which you’ll be happy.
Contact us to start a joint project.