How to measure the ROI of Social media?

The best possible return on investment (ROI) has become a sacred grove of the world of social media marketing. The high social media revenue may be greater proof of the success of your strategy.

If you’re still wondering how to calculate, so here you need to know about measuring social media ROI.

What is Social Media ROI?

Social media ROI is a metric that indicates that you have generated so much value with their social media investments. It is usually the sum of money, but some companies ROI looks at the non-monetary value, such as comments or newsletter signup. If you are not familiar with social media ROI, so it is basically a return on investment on the efforts made in social media. ROI words have their roots in finance and business. This method is used to identify the dollar returned to most investment dollars. It is used to analyze how you will bring back what you do with your resources, efforts, and time. To get started, you need to understand the amount of the first returns from their social media marketing initiatives. What does this mean, you must feel it before you have much money to spend how much time, money, and money on your social media marketing efforts.

How to measure your Social Media ROI?

Some steps to measure accurately the social media ROI that you need to follow:

STEP 1 – Earnings

Describe your goals, measure, and record. But wait, before you jump to measure your return, you must clear idea about the objectives. Your goal needs to be sure it is connected to your campaigns and quantitatively. Simply put, it sure can be assigned to a number of objectives. They can be downloaded, registration, email list, shopping, etc., moving towards your goals, make sure that your goals are call-to-action, which will make your customer. Do not try and stop any metric. Likes and shares can be cool, but they should not be your primary goal.

Now we have some goals in mind, your next step is to keep an eye on them. This part is very important to measure your social media ROI because it gives you that helps you to feel how it responds to your audience your digital marketing strategies and efforts. And to keep an eye on it, you can just use Google Analytics. It can be used to establish goals and identify the decisive contribution of each goal to each performance. You can start by putting a dollar amount on each profitable goal that can be reached. This will enable you to check that you have earned much money from each of your social media marketing efforts.

STEP 2 – Cost

It goes without saying – Keep track of what you’re spending so much money. To find out whether you are producing negative or positive ROI through their social media campaigns, measure that you are spending so much money on it. Cost is a specific way to measure how to do it.

Some key figures to be included in the calculation are as follows.


For every hour you work on your social media marketing strategy, enter the value of the dollar at that.

Cost of Content development

A lot of people mix this section, so it is important for you to be alert and keep a record of how much you are spending on creating your content. Write that a writer or spend much to hire a graphic designer.

Social Media tools

In this part, count all the additional tools you use to track your social media performance.

Advertising cost

Sometimes we forget the factor of advertising cost while calculating. So, if you have any of those “sponsored post”, so do not add to their costs.

STEP 3 – Calculating Returns

At this point, you will have figured out your costs, now is the time to move forward to the most important part of your calculation – calculating your return. The basic social media ROI formula is as follows:

Profit / Investment x 100 = Social Media ROI%

Benefits – The money you have earned from your social media marketing efforts

Investment – The total cost of your social media marketing efforts

It’s easy to apply this formula to calculate the monetary benefits, but when you bring your investments intangible results things are more complex – for example, mentioned in social media or eBook download.

Rajesh Kumar
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