Social media roi measurement

How to measure social media ROI

Social media marketing has taken on a whole new momentum in the world of digital marketing. That said, quantification and measurement of social media ROI can be a daunting task to get a true picture of the social media marketing for businesses efforts. When it comes to paid social media, other than e-commerce and D2C, it can be tough to measure how much value the paid ads are creating and returning.

In this article, let us go over the elements of social media ROI and the steps to be taken to measure it.

What is social media ROI measurement?

Social media ROI is a statistical metric showing the amount of value generated by the investments made toward social media marketing. ROI is generally measured as a monetary value. Sometimes that can be difficult, especially when the impact on revenue is difficult to attribute and specify. In such a case, ROI is first measured as a non-monetary metric. There are many social media tools for marketing that also follow the social media algorithms.

To take an example, if the goal of a social media campaign is to increase the customer base, ROI could be measured by the growth in follower count on a social media platform. The parameter used to measure ROI should therefore be determined by the goals of the particular brand.

Why measure social media ROI?

There are a few key reasons why a business can benefit from the measurement and tracking of social media ROI:

–       Identify which strategies work so that those can be doubled up, and the ones not working can be fixed.

–       Back up and consolidate budgets allocated to social media marketing.

–       Equate the value of social media with the brand.

 –      They are proof that the social media campaigns are achieving the defined objectives of the business.

How to measure social media ROI?

The formula for measuring is:

ROI= (return – investment) / investment


ROI= Profit / investment * 100 = ROI%


–       Return or profit is the money earned from social media marketing campaigns

–       Investment is the total cost of efforts put into social media marketing

The above explanation implies that the goal of the brand is what needs to be established first and foremost because different brands will want to achieve different goals, and therefore the returns in each case will differ accordingly. Thus,

–       New followers

Also read the different types marketing strategies for twitter .

Step one:

Choose a goal

–       Increase engagement

–       Downloads, installs (conversions)

–       Online purchases

–       Clicks or CTR

–       Video viewership

–       Newsletter sign-ups

Step two:

Track the goal using Google Analytics or other software to get an exact metric reflecting the degree of success of the campaign on each social media platform.

Step three:

Assign a monetary value depending upon the extent to which the goal was accomplished.

Step four:

Measure benefits from the channel. This can be done by collecting incoming traffic data and conversion numbers from an analytics tool.

Step five:

Determination of total costs Investments made on labor costs, promotional fees and sundry expenses are to be accounted for.

Step six:

Using the data from steps 4 and 5, ROI can be calculated per social media channel. The resulting data will provide a clear picture and indicate improvement areas for the brand.

Also read different types of marketing strategy for applications.

How to improve social media ROI?

Improving social media ROI rests on social media optimization (SMO), i.e., spending money in those areas which are likely to reap the best returns.

–       Competition awareness is key as it impacts the strategic and tactical decision-making to improvise for all paid and non-paid social media campaigns.

–       Content should be distributed on platforms which will grab maximum eyeballs and where customers are likely to respond.

–       Be driven by data to invest selectively, not on gut feeling or instinct.


Social media ROI measurement of paid campaigns may be perceived more as a science compared to organic campaigns. However, it’s vital to be able to quantify the value of the brand’s presence on social media platforms, irrespective of the type of campaign.

Social media marketing has evolved to the extent that measuring its ROI is critical to any marketing team’s day-to-day agenda. After all, seeing is believing, and numbers can show a lot. Social media presence is no longer a box to tick for brands, but the way businesses leverage social media can majorly impact the overall growth and visibility of the brand in the market. But at first you need to select a perfect social media platform for your business.

At Digileap Services Pvt Ltd, we can help you use methods that can impact your ROI and execute social media marketing campaigns with focus and precision. Reach out to us today, and together we can develop strategies to reduce your costs and increase the returns through benefit-oriented social media campaigns.

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