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How to determine the roi of your social media activities?

Social media ROI is a measurement that demonstrates how much value your social media investments have produced. ROI is referred to as “Return on Investment.” The return on investment from your social media activities and expenses is obtained by extending that to a social media ROI definition.  To get more success on social media you need a complete idea on how ROI works. Taking help from Socialgreg can help you grow your social media channels. However, before investing in social media marketing, you must know why it is so important to determine and evaluate social media ROI. Continue reading to learn more.

Why is it so important to determine and evaluate social media ROI?

Social media ROI is a measurement of all valuable social media actions divided by the cost incurred to carry out such actions. For instance, if the objective of a paid social media campaign is to boost brand exposure and impact, ROI could be determined by an increase in the number of followers or post impressions. Your goals should be the only determinant of the metrics you employ to measure social media ROI for your own company. 

Measuring social media ROI should be a top priority for your company for a number of reasons, including:

  • Demonstrate the effectiveness of your social media marketing initiatives and how they are contributing to the desired outcomes.
  • Budget allocations for social media are supported and informed.
  • Show how important your social media marketing is to the success of your company.
  • Determine the components of your approach that are working the best so you may focus more on those elements and improve the ones that aren’t.
Steps for determining the ROI of your social media activities 

Engagement doesn’t have a clear monetary worth, in contrast to conversions. But given that brand visibility is the top content goal (35%), engagement is obviously valuable. Instead of sales or money, brand awareness is what adds value. The hope is that brand recognition will eventually translate into actual financial gains.

Here are some steps for determining social media ROI:

  • Step 1: Decide how much time you spend on social media.
  • Step 2: Establish precise social goals that relate to overarching commercial objectives.
  • Step 3: Monitor metrics that are consistent with your goals.
  • Step 4: Produce an ROI report demonstrating the effect of social media
How to determine the ROI of your social media activities?

The following is the simplest social media ROI formula: Profit/Investment multiplied by 100 equals social media ROI%

  • Profit: The money you have made from your efforts to market on social media.
  •  Investment: The overall cost of your social media marketing activities.

This technique makes it simple to determine ROI for social media campaigns and activities that are directly linked to sales (for example, paid ads for e-commerce products). However, when it comes to spending on social media that yields less obvious value, things become more challenging. As previously indicated, ROI might first be measured by non-financial variables in situations where it is difficult to attribute the direct impact on revenue (increase in audience, number of sign-ups for the newsletter, etc). Although you may just describe your ROI in terms of these numbers, the goal is still to assign a monetary value to your social media expenditure. Do you love golf? Do you know how to regroup golf clubs


Hope you have got complete idea about how Social media ROI works. Compared to organic initiatives, calculating the ROI of paid social media efforts may be a more precise science. For any kind of promotion, it’s crucial to be able to determine the value of your brand’s social media presence. The ROI of a social media campaign is crucial for gaining profit from the program.


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