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How To Measure Social Media Roi?

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By Author: neha chauhan
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What is ROI?
ROI: Return On Investment is a performance measure used to evaluate the efficiency of an investment or to compare the efficiencies of several investments.

Social media ROI is the value generated through social media marketing campaigns, represented in percentage or ratio. The value is not always measured in currency notes, it depends on the objective of an organization. Value can be measured in customer reach and engagement if the objective is brand awareness.

Why should you use social media ROI?
It provides the data showing that your marketing strategies are efficient and keeps the investment going
Shows the faults in marketing strategies that are inefficient in delivering return investment
Helps you understand the audience better - what products or content they are interested in, time spent engaging with your brand, etc
Shows how much value you are delivering to the audience
Shows how social can have an impact on an organization in terms of brand awareness
Provides the data to support budget requests

How to measure ROI for social media?
Social media comes with in-built analytics tools and insights to know how a page is performing. It is not just about likes and tweets, but also how engaging your content is, monetizing the likes, offers, signups, and so on.

But these insights do not tell you how your business is doing in terms of ROI. Here is a short guide to measuring it for social media:

Set objectives within a time frame: What is the objective of your brand? Is it brand awareness? Or to drive traffic? Sales? conversion? Set a goal with respect to the objective, for example,” attract 1000 new followers within a month”, or “get 100 more sign-ups in two weeks”.

Key performance indicators(KPIs): Any metric that is of value, not necessarily monetary, like the number of followers and likes, traffic, engagement, reach, and impressions can be considered as KPIs. They will yield monetary gains in the long run.


You can link KPIs to your business goals by focusing on the objectives. For example, if you want to generate more sales, focus on leads, and conversions.

Set up the tools: Google Analytics is a free tool that gives you data on the performance of your page on social media. It shows what kind of impact social actions have made, which social network is working best for you, and the most popular content visitors are engaged with. There are various sections in google analytics that gives you particular data like,
Network referrals: in this section, you can check how users are getting to your site, which site they visit the most, and the number of visitors in a site.
Data hub activity: it shows you all the actions and the number of actions that have been carried out by visitors likes how many likes, shares, comments, and if there is a sale, how many buys have been made, etc.
Conversion tab: if you are selling a product on different social media, you can learn how many conversions have been brought in by those media, each in Google analytics. It will show you the value of conversion rate in dollars.

Adding UTM parameters to your social media ad’s URL is quite effective in finding out how much traffic and conversions your marketing strategy is generating.

Facebook analytics: For tracking conversions from Facebook ads, leads to sales, you can use Facebook Pixel. It shows what kind of action people take after viewing your Facebook ad, builds targeted customers for promoting future ads and remarket to those who have already taken some action on your site.

Calculating: After calculating the total cost implemented on ads and campaigns,
ROI = return - investment / investment x 100. This is a general formula to calculate ROI.

Suppose you have spent 200 dollars on Facebook to promote a product, X. you have obtained 600 dollars of profit. What is the ROI percentage? You can calculate with the formula: ROI = 600-200/200 x 100. The return on your investment is 200%, which means good news. If the number is negative, then it’s time to reconsider the marketing strategies used to promote your social media.

Are you looking for Best Digital Marketing Services in Bangalore? Well, you are in the right place. Webi7 is one of the best digital marketing agencies in Bangalore. To read more interesting blogs, visit our site.

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