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How To Measure the Social Media Marketing ROI: Return On Investment

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How To Measure the Social Media Marketing ROI: Return On Investment

Assume that your organization started using Social Media Marketing. You are making the updates in Facebook, Twitter and LinkedIn regularly and communicating with your targeted audience, fans and followers. You may think like that all things are going well, but you are unaware of how to determine the ROI for your organization and also you are unsure about your Social Media Marketing efforts.


Social Media ROI: In today’s world every company is using Social Media, at this particular time every company must need to learn how to calculate the social media ROI. If you want to improve your business and results of your company, and what’s working and what’s not you need to learn to calculate the ROI for social media marketing.

In order to calculate your ROI you need to start by understanding your return. Your return is what you get from your Social Media Marketing efforts, and it’s not just sales. Lot of people will say that we got 3 times the sales vs what we invest, So what is your profit on those sales and understand your profit margins.

The next step is Investment, not only money but time also comes under consideration. Every hour spent on social media will get you something back. The formula for calculating ROI is your profit minus investment on social media divided by Investment.

ROI = Profit – Investment / Investment.

Social Media Challenges:   A survey report from iContact company about the social media challenges and goals of their customers are

  1. Lack of Time.
  2. Uncertainty about how to determine ROI.
  3. Lack of Knowledge about Social Media.



To get the better ROI from social media, First you need to strengthen you brand through Reach, Engagement and sentiment. We can calculate the Brand Reach


Brand reach = Facebook fans + Twitter followers.

Content Engagement =  shares + replies/ total pieces of social content

Content Reach = Brand Reach + ∑ (shares) * reach of each sharer.

Positive sentiment = No of positive brand engagement/ total no of mentions.

This article was written by admin