How To Calculate Social Media Return On Investment (ROI)?

One of the most popular forms of Marketing is through Social Media sites. There are so many popular social media sites through which you can promote your Online Business. However, you would have to spend time and money in marketing through sites like Facebook, Twitter, Digg etc. How would you calculate the return of investment from social media? Here is a look at hat you can consider to find social media ROI:

Social Media ROI


Content Value

The kind of information that you put in your social media page is going to bring returns in terms of online sale. The content that you put here must be engaging and must motivate the reader to purchase your product.

You can measure the value of your social media content by analyzing how many people who read the content visit your site to buy its products. This shows the effectiveness of the site’s content in bringing online sales. There are lots of tools that you can use to measure the number of people arriving at your site to buy products after reading the content in your social media pages.

Advertising Value

This means how many people get interested in what your company has to offer by what is advertised in social media site pages. For example, if you put a one page advertisement about a hot product in Facebook, you can find out about its ROI by checking how many people buy that product after reading this advert. You can find how quickly the advert’s information has reached out to others and has fan followings.

Lead And Sales Value

This means looking into how many people who visit your site through social media page actually buy its products. Whenever there is a sale from a  person who has laded in your site from your social media page, it means that the page has convinced the person to buy your product and hence it has a good sales value and offer profitable leads. If your social media page is bringing in considerable sales, the page is highly productive as it is able to good show results.

Support Value

What is the support offered by social media site pages to existing marketing strategies? Is the page offering a higher degree of sales than other marketing forms? If so, then the page is a crucial part of your marketing strategy and brings good results. If not what can you do to improve its returns?

Research Value

This is an important criterion to measure social media ROI. It shows how well your social medial site’s pages are bringing in conversions by measuring it through various research tools. This involves measuring the behavior of a visitor prior to visiting the social media page, then after visiting it, how quickly their visited the site to buy the product after reading the page, if they visited some other site for more information and then purchased the product etc., various research analytics show the performance of your social media page under different situations, which helps to determine its effectiveness as a marketing strategy.

7 thoughts on “How To Calculate Social Media Return On Investment (ROI)?”

  1. I’m not that experienced in Social Media marketing campaigns. But this is certainly useful for everyone. Calculating ROI would be a great step to re-estimate budget.

  2. Thanks for writing about this very interesting topic. I find this challenging. It’s much easier to measure and prove the ROI on a social media ad campaign designed to increase membership.The challenge is being able to properly show an organization what percentage of an engaged audience (which was acquired through the campaign) converts to revenue, and then at what point this engaged audience will begin to convert. Yes, we can show the increase in engagement, but showing the conversion percentage on engagement is a different story.

  3. One of the fun things about social media and business growth is the fact that you can connect with others virtually as you grow your business. In connecting with others, you can gain support in areas where your business is weak when it comes to social media.

  4. After you/me/he/ she have defined our social media return, we need to quantify the social media return into dollars and cents. This is difficult because you need to look at each type of social media return and develop a method for dollar quantification.

  5. The conversations you generate on social media travel to hundreds, even thousands of people. Every one of them a potential customer.

  6. I have definitely learned something new today. I have put in a lot of cash in my social media promotion plans, but have never knew how to calculate the roi… you have shed light on this, my friend. Thanks, Brian.


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