Measuring Social Media ROI with Analytics Tools
Social media continues to change the online marketing landscape as new platforms launch and draw new users. From Instagram to TikTok, the success of your business online will depend on your ability to take advantage of the ever-changing social media landscape. That said, you’re probably wondering how you know your current marketing strategy on social media is effective. Luckily, you can go about measuring social media ROI with all kinds of metrics and analytics tools. Read more about them in this blog.
The Social Media ROI Formula
Before we dive into how to see if your social media marketing campaign’s ROI is favorable, let’s break down the formula to calculate it. The formula used most often by professionals is as follows:
(Return – Investment made) / (Investment made x 100) = social media ROI
Great, you have the formula, but how exactly do you interpret the result? You want to ensure that your social media ROI result is higher than zero percent. Anything less means you need to make serious adjustments.
Metrics for Measuring Social Media ROI
Now that you understand the basic formula for social media ROI, you want to know what metrics you should utilize to analyze the success of your campaign. Here are some metrics worth considering:
Engagement
Engagement is a vital means of determining the success of your current social media strategy. Click rates, comments and reactions to posts, and even mentions of your brand. In fact, marketing researchers have found that engagement is the top metric used by social media teams to evaluate the success of their strategy.
Reach
The next metric used by brands to measure ROI for socila media is to examine their reach. This typically involves looking at follower count on social media accounts and observing any growth in number of followers. If the follower count drops or remains stagnant for an extensive period of time, it might be time to switch up your social media strategy.
Conversions
In the context of social media marketing, conversions refer to how many new customers are gained through your social media efforts. Tracking potential conversions involves paying attention to click rates on specific posts,
Tools To Measure ROI for Social Media
Aside from metrics, you also need a solid plan for your social media campaign. When planning, you should consider setting tangible, specific goals and plan your campaign around achieving them. As for how you can effectively execute your social media plans to improve ROI, here are some useful analytics tools:
Google Analytics
The most accessible analytics tool for social media ROI is Google Analytics. Aside from being free to use, it also provides social conversion reports, which can inform your social media strategy and allow you to adjust or lean in more on a certain approach that’s bringing results.
HubSpot
This platform includes an Advertising ROI Calculator for which you input your budget, conversion rate goals, and how much you’re spending to reach your social media goals for the month. It will then automatically provide an estimated ROI for the month.
Hootsuite
Like HubSpot, Hootsuite also includes a Social ROI Calculator, except this one is geared toward organic and paid campaigns specifically for Facebook. Paying to use Hootsuite is required if you wish to track your social media success on other platforms like Instagram, LinkedIn, TikTok, and others.
Boost Your Social Media Impact with ASAP Marketing Solutions
Now that you have an idea as to what goes into measuring social media ROI and three different tools that will help you, you can start creating campaigns that will actually draw new customers. Of course, social media management can make your already full cup overflow, so how will you make the time to successfully handle this part of running your business? The answer: ASAP Marketing Solutions. Our team will develop and refine the best social media marketing strategy for your business’s needs. Contact us today and start seeing those results.
