How do you measure roi for social media marketing? any techniques or formulas?

Likes are great for brand image & organic reach. But this necessarily doesnt mean that these likes = revenue.

You could use Facebook Pixels from your Power Editor, and set up the campaign strategy as Cost Per Conversion campaign (FB is exceptionally good at get your Target CPA) 

Cost-per-Conversion Campaign --> pay by impressions.

Every single social media platform has a pixel or a piece of code that you could use to track ROI.

I wouldnt use GA to track ROI from social media, 21% of FB traffic gets misattributed to direct in GA!

in social media return of investment means ROI = (return – investment) / investment %.

ROI = (return – investment) / investment %.

This means that if you increase your return while keeping your investment the same, then you increase your ROI. This is good. If you decrease your return while keeping your investment the same, then the ROI goes down. That’s bad. A high ROI is better than a low ROI.

 Because the ROI formula uses only two inputs – the return and the investment – the ROI formula is an easy way to measure and compare marketing campaigns.

Thanks Ali for posting a intuitive question in this section.

From my10 years experience I learned a lot about online marketing and still learning! I helped various concerns using the simple social media - ROI strategy and I shared the same in this section. 

Like  any  business  endeavor,  you  naturally  want  to  have  a  fair  idea  on  the  return  of  your investment in social media and not simply jump right in just because it’s the popular thing. 

 

The ROI cycle of social media can be separated into three stages. 

 

LAUNCH ----------------------------- MANAGEMENT ----------------------------- OPTIMIZATION

 

Stage1: The Launch 

At this stage,100% of your focus is on setting up accounts on the5 Social Packs: Facebook, Twitter, Google+, LinkedIn and YouTube. While there are a number of other popular social networking sites, the5 are considered to be the critically important ones. You simply can’t afford not to have presence on all5 platforms. 

 

The Launch stage is more of executional with the primary goal of getting started. Here are the details of this stage: 

 

Approach:  Executional

Objectives:   Social Media Presence

Focus:     Short-Term

Results:  Negligible

 

At this point, you won’t be able to expect any significant impact or derive results.

 

Stage2: Management

At this stage, about60% of your company’s efforts will be focused on developing the5 social media sites. About10% of the focus is directed towards the creative and brand offer and20% on  setting  up quantitative  metrics  like  inbound  links,  traffic,  Facebook  “likes”,  etc.    The remaining  10%  will  be focused  on  qualitative  metrics  such  as  survey  results,  pools  and studying brand sentiment. 

 

Approach:  Tactical

Objectives:   Customer Engagement

Focus:     Mid-Term

Results:  Increase in Traffic

 

Stage3: Optimization

During the Optimization stage,25% of the focus is on gaining more leverage on all5 social media  platforms,  and  30%  will  be  distributed  to  creative  and  brand  offer  development,  as well as the quantitative and qualitative metrics. The other25% of the focus will be directed to improving the conversion rate and the optimization of campaigns. The remaining20% will be used to measure success of the campaign which will be the basis of your ROI. 

 

Approach:  Strategic

Objectives:   Social Media ROI

Focus:     Long-Term

Results:  Increase in Revenue

 

Despite what many social experts claim that ROI of social media cannot be measured, there is actually  a  way  to  measure  it.  This  process  will  require  a  better  understanding  of  your customer lifetime value (CLV) or the average revenue generated by a customer during their entire engagement  period  with  your  products  and  services.  This  figure  will  be  used  to compare the results that have been generated on your campaign in social media. 

 

For example: 

 

If a typical customer spends about $10 every  month on a particular product and has been a loyal patron  of  a  certain  brand  for  about  3  years,  this  equates  to  the  average  customer lifetime value of $360.00.

 

Most  companies  are  willing  to  spend  about  10%  of  their  CLV  for  the  acquisition  of  new customers.  This  means,  they  are  willing  to  spend  $36  to  acquire  a  new  customer  who  is expected to spend $360 all throughout her engagement with the brand. 

 

So if your social media efforts will cost you $36,000 for one full year, and your campaign will be able to generate1,000 new customers every year, then you definitely have a clear winner in your hands.

 

I hope my answer would help you in understanding the stages of social media ROI.

 

Your comments are most welcome.

 

Thanks and Regards

Feroz Khan Saleem

There are several techniques and formulas that can be used to measure the return on investment (ROI) for social media marketing. Here are a few common methods: The basic ROI formula: (Revenue generated from social media - cost of social media marketing) / cost of social media marketing. This formula will give you a percentage that represents the return on investment. Cost per lead or conversion: Divide the cost of the social media campaign by the number of leads or conversions generated. This will give you an idea of how much it costs to acquire a new customer or lead through social media. Engagement rate: Divide the number of likes, shares, comments, or other engagement metrics by the total number of followers or reach. This will give you an idea of how well your content is resonating with your audience. Social media attribution: attribute revenue generated to the source of the customer journey, whether it's social media, paid search, organic search, etc. Return on Ad Spend (ROAS): This measures the revenue generated from a social media campaign divided by the ad spend. This will give you an idea of how much revenue is generated for every dollar spent on advertising. These are just a few examples, and the best method will depend on the specific goals and metrics of your social media marketing efforts. It's also important to keep in mind that social media ROI is not always easy to measure, and it's important to establish clear goals, metrics and track them regularly in order to evaluate the effectiveness of your campaigns. Watsapp Status ChatGPT Jan 9 Version. Free Research Preview

One has to learn Web Analytics for that.

ROI MEANS RETURN OF AN INVESTMENT, IT IS MEASURED BY DIVIDING INVESTMENT RETURN WITH THE INVESTMENT COST, ITS USUALLY EXPRESSED IN RETIO OR PERCENTAGE

try my best to achieve the goals in my capacity and I will surely take his guidance how can i do it.

Number of users/Likes is not basically the matter but the major & the most essential phase where the internet marketing expert has to focus in Social Media Management is that, its not only the matter of branding but to make it the most successful community where the users would love to engage with it frequently. This will really gauge your true success in Social Media Marketing. Have a Nice Day.