Social Media ROI: How to Determine Your Return on Investment from Social Media

The amount of money spent on social media marketing is increasing.

As per the eMarketer’s US Social Trends Report for 2019, social media marketing is projected to increase by 19% in 2022.

It would result in an amount of $37 billion in advertising spending.

Based on the Advertising Expenditure Forecasts from Zenith.

The number of ads is estimated to be as high as $329 by 2022, which is 49% of the world’s advertising spend.

Marketing professionals are investing in successful social marketing strategies via media and online advertising more than ever before.

However, just 20.3 percent of marketers believe they have evidence to quantitatively prove the value of social media advertising.

They don’t know how to determine the social media ROI.

The ROI of your social media informs you which are the most effective social media channels and strategies to devote your time and resources to…

…you’re not wasting your time or money on something that isn’t producing results.

The analysis of your ROI is an essential element in determining which strategies for marketing work best for your company.

This allows you to understand what marketing initiatives are worth pursuing and which require a change.

This formula is only helpful if you only want to focus on revenues.

The ROI of social media generally is also a part of other data like engagement, follower growth.

As well as brand awareness, which is essential to the success of a business.

Ultimately, the value isn’t always measured solely in cents and dollars.

Your social media marketing efforts could be paying off, regardless of whether you experience immediate growth in income.

Estimating your total social media ROI could be difficult, but it’s a doable task.

Good news: your LYFE Marketing friends LYFE Marketing are here to help you learn!

There are five ways to evaluate the social media ROI. These are:

In this post, we’ll explain the meaning behind these steps and how you can estimate your ROI on social media by using tools to analyze your data.

Identify KPIs

“Key Performance Indicator” is an abstract word that means everything you can measure to determine whether your business has achieved its goals.

Social media ROI can’t be calculated based on the revenue only.

It is imperative to look over any findings or crucial KPIs for social media that can benefit your business, even if the value isn’t monetary.

After all, non-financial outcomes like follower growth, engagement, and growth in Facebook post shares

Retweets, or retweets, increase the number of emails you receive from review sites, and positive publicity can result in more earnings.

The most popular metrics to analyze are follower growth, reach traffic, leads reviews, calls, and conversion rates.

Different business owners may have their own goals for conversion. It’s about determining what you’d like to achieve for your business.

The first step in determining the social media ROI you can take is to determine your goals for social media.

Are you looking to increase the number of followers or engagement, improve the average sales, or increase the number of emails you send? The goals that you are most interested in most will be your KPIs.

Align Social Media Goals and Business Objectives

To allow your social media marketing efforts to yield a real-world return on investment, the KPIs need to be linked to your business’s larger goals.

Sometimes, it’s hard to believe that online success doesn’t translate into the real world; however, it does!

For instance, over 30% of word-of-mouth referrals originate through social media platforms.

Additionally, 43 percent of social media users have purchased a product after liking or sharing the product through Facebook, Twitter, or Pinterest.

And 71% of customers who had a positive online experience with a company are more likely to suggest it to friends and family.

Beyond the profit, social media metrics make a significant contribution to popular business goals.

How can you connect your KPIs with your objectives on social networks? That’s simple!

To boost brand recognition, you’ll concentrate on following and engagement.

If you want to make more sales, the emphasis is on leads or conversions.

If you want to bring more traffic to your site, you must focus on clicks to your link.

Track Results

Whatever your objectives are, you’ll need a method to monitor them to measure the ROI of social media.

Like Google Analytics, many social media platforms come with integrated tracking features.

Facebook Ads Manager will provide you with many details on your ad’s performance.

It will even let you know the exact amount of revenue your business has derived through advertisements on Facebook.

Twitter and Pinterest advertisements feature similar metrics.

Upgrade your Instagram to one that is business-friendly will give you figures like the number of users visiting your profile each week.

The best times to post are when you can maximize engagement and daily impressions or profile visits.

Consider hiring our professional social media marketing experts for more comprehensive tools.

Businesses often have access to third-party data tracking tools that will provide more specific results than free ones…

…offered via your social media profiles.

This tech can be handy in measuring your social media’s ROI.

It is essential to monitor your analytics results for social media regularly.

It is unnecessary to keep track of your social media posts and follower numbers daily.

However, it is essential to constantly improve your advertising and ensure that all is working smoothly.

This allows you to address issues immediately and fix mistakes before they cause significant problems.

You’ll have to utilize the tracking pixel to monitor landing page and site traffic as well as conversions.

The word “pixel” refers to a tiny bit of code that could be embedded in a web page.

Cookies use pixels to monitor the user’s activity on your website after clicking the ad.

You can track the pages on your website that users leave from and what kind of device they access your site.

This tool for social media can help focus on your ideal viewers.

It is possible to use the social data collected from your Facebook pixels to create an audience for retargeting or a like-minded audience based on the number of people who visit your site.

To gain a better understanding of your audience to understand your audience better, you can use UTM codes to acquire details about what attracted the consumer…

…to your site and how they navigate through the website and the way they navigate through.