Tracking social media ROI (return on investment) is an essential aspect of the job of any social media manager. It enables you to evaluate the success of your job better, demonstrate value to the organization, and iteratively adapt your plan to increase returns as you learn.
What is social media ROI?
Social media ROI is the value of your social media efforts divided by the investment made. The ROI for social media is calculated as follows: (return – an investment made) / investment made X 100 equals social media ROI. It is a measure that shows the value your social media investments deliver. It is a method of determining how successful an investment is or, maybe, the return on investment in social media.
What is the importance of tracking social media ROI?
ROI calculates the amount of return on an investment relative to its costs. It is employed in analytics and is a standard for developing future marketing strategies. This allows you to identify which marketing approaches are effective and which may be improved.
Tracking social media ROI (return on investment) is an essential aspect of the job of any social media manager
Tracking social media ROI enables you to evaluate the success of your job better, demonstrate value to the organization, and iteratively adapt your plan to increase returns as you learn. ROI calculates the amount of return on an investment relative to its costs. It is employed in analytics and is a standard for developing future marketing strategies. This allows you to identify which marketing approaches are effective and which may be improved.
How to measure social media ROI?
Consider the primary purpose of your marketing campaign when tracking social media ROI. Your campaign’s goal is likely to fall into one of the following categories:
- If you want to boost brand awareness
This measure is all about who sees you on social media and engages with you. It considers the size of your audience, the number of shares, and how far your social media material goes and gets seen. It can be more difficult to quantify than engagement because it simply considers how many people viewed your post, but tracking is essential.
Impression tracking is essential since it measures your ability to get your content in front of your followers and target demographic. When your impressions increase, you know your content appears in your followers’ feeds more frequently.
- Increasing sales and conversions
Do you want to boost your audience through social campaigns? You may calculate the ROI of your campaign by analyzing the number of new people who follow your brand and how your follower count grows over time.
- If you want to increase engagement
- Engagement Rate
Engagement on social media is one of the most popular and valuable metrics. It displays how people connect with your content and brand. No matter how many followers your account has, an engagement rate may help you determine which posts work well, what material engages your audience, and how to successfully share your success. Growth may be measured using engagement rates rather than vanity metrics like follower numbers.
- Video completion rate
So, although a video may generate a lot of traffic, which converts the most into customers? That is where the money is! Return on Ad Cost – With paid ads, if you are looking for ways for easily tracking social media ROI just divide the total income earned by the entire cost.
- If you want to drive sales or conversions
- Cost per click (CPC)
How much do you pay for a single click on your social media ads? The lower your cost per click, the more effective your campaigns will motivate your audience to take action on social media.
- Conversion Rate
This indicator counts the number of individuals who perform a certain activity on your website, such as purchasing or completing a form. ROI: This statistic calculates the return on investment of your social media activities, considering both the cost of your efforts and the money gained.
The best social media ROI tools
Ø Google Analytics
Google Analytics, with its relevant quantitative data, is one of the most powerful tools for tracking social media ROI initiatives. It allows you to rapidly determine which social media channels drive the most traffic and which content is gaining popularity.
Ø Google Analytics UTM Link Builder
UTM parameters are tiny pieces of code that you may add to URLs you publish on social media to track and analyze data about website traffic and where visitors are coming from. UTM connections employ a few important components, which include:
- Campaign source: the social media network you use (for example, Facebook or Instagram).
- Campaign medium: content used (for example, a video ad or carousel).
Ø Social Media Platforms Native Analytics
Each social media platform has analytics tools for tracking social media ROI. These native dashboards may help you easily track the effectiveness of your ad campaigns, whether you’re going into Instagram Insights or the Meta Ads Manager. These tools are free to use and might be an excellent starting point for gathering information about your paid advertising. The trick is configuring your reports to display the data you want to measure, such as reach, impressions, website clicks, or conversions.
When tracking social media ROI, an all-in-one social media suite is important. You’re undoubtedly using many social media networks, and you’ll need a centralized dashboard to manage and analyze your marketing efforts. Plann makes it simple to measure interaction rates for every post, whether it’s organic social content or sponsored advertisements.