Social Media ROI: How To Measure Your Marketing Efforts
Today social media is the go-to platform for businesses and individuals to show the globe what products and services they have to offer. The reason behind giving priority to social media platforms is the time spent by people on these mediums and the ease with which you can utilise the platform to showcase what you have.
As per the latest Forbes data, on average people spend 149 minutes on social media platforms worldwide. The world is glued to their portable screens and their fingers are busy scrolling through their daily feeds. Although the competition to produce content is high, people are still hungry and they are looking for more on social media.
As a business, not only the priority is to create and post interesting content on social media but also to measure how much return you are getting for your efforts. Measurement of ROI is necessary to find out if your campaign is going in the right direction with the right volume of social media optimization services.
In this article, we are going to discuss some important factors on how to measure your social media marketing efforts effectively:
1. Identify your Objectives
What you are aiming at? What do you want to achieve through your social media marketing campaign? Are you looking to generate more leads, increase sales, boost website traffic or increase your brand visibility? These questions will help you to locate your objectives and choose the most relevant metrics to measure your efforts. For example, if you want to increase your website traffic you will be interested to know the number of online visitors visiting your website through Facebook, Instagram and YouTube posts.
2. Analyse data
Facebook, YouTube or Instagram analytics tools can provide you with insight into how audiences are reacting to your published posts. Go through the metrics like impressions, click-through rate (CTR), reach, engagement rate, conversion rate and cost per acquisition (CPA) to ascertain how much return you are getting from your marketing efforts.
3. Calculation of revenue
Find out the revenue generated through your social media posts, videos and referrals. You will have to assign a monetary value to the specific actions taken by the visitors to quantify the impact of your social media attempts.
4. Calculate Investment Expenditure
Find out the total amount of investment done on your social media marketing campaign by calculating the cost of social media management tools, employee engagement cost, and paid advertising cost.
5. Evaluation of ROI
After calculating revenue and expenditure you can easily calculate your return on investment (ROI) by dividing the revenue generated through social media by the expenditure incurred in social media marketing efforts. Here is the formula to calculate your ROI percentage:
Social Media Revenue ÷ Social media Expenditure x 100
For example, if you have generated $10,000 in revenue through your social media marketing campaign and have spent $5000 on social media marketing then your ROI will be 2:1, Positive ROI indicates that your social media campaign is going in the right direction and negative means you will need to reassess your strategies.
6. Bonus Benefits
Social media platforms not only help businesses to generate revenue but also assist in increasing customer loyalty, enhancing brand reputation, and customer engagement and educating viewers about upcoming products and services. These factors provide long-term benefits for businesses.
7. Follow industry standards
Another way to find out if you are running a successful social media campaign is to compare it with industry standards. As per the latest data from Wordstream, the average click-through rate across all industries in Google ads is 1.91% and as per Databox the average conversion rate for Google Ads is 2.85%, You need to make sure that your calculations are close to industry standards or else find out ways to streamline your social media campaign.
8. Try different and innovative methods
You can attract visitors only by doing something different, For example, if you keep on posting your regular posts without adding anything extra to catch the attention of your audience it will get scrolled down without leaving any impression on the viewer. Experiment with images, videos, blog posts and different ad formats.
Are you looking for social media optimization services to boost your social media presence?
At Techshu we take all the necessary steps to make our clients feel that they have made the right choices by opting for our social media services. We understand that you invest your hard-earned money to utilize social media platforms to grow your business, And it’s our responsibility to provide you with the best mix of social media optimization services in order to achieve what you are looking for.
We are a team of 750+ professionals and we have delivered 11000+ projects. We are also a proud Google and Facebook partner so if you are looking for top-notch social media services in Kolkata please write to us at: https://www.techshu.com/contact-us/.