Social Media ROI: How to Measure It

It may be difficult to calculate the ROI of your social media marketing activities, especially if you are using organic social media because your entire strategy and content output aren’t directly tied to specific CTAs or attribution links. Even when it comes to paid social, evaluating how much value your sponsored advertising is returning can be difficult outside of D2C (direct-to-customer) and e-commerce.

It’s somewhat astonishing to see that the vast majority of internet businesses perform their social media marketing completely in the dark, with no idea how social media contributes to their company’s success. To be honest, it’s not totally their fault – social media ROI is a difficult beast to manage, and it’s the scourge of marketers everywhere.

What exactly is social media ROI?

The Internet of Things (IoT) ROI is a metric that gauges how much value your social media investments provide. The return on investment (ROI) is frequently stated in monetary terms. In circumstances when attribution of the direct influence on sales is problematic, ROI may initially be estimated using non-monetary considerations. If the purpose of a paid social campaign is to increase brand exposure and influence.

The parameters for measuring social media ROI for your company should be totally determined by your goals.

Why is it difficult to calculate the ROI of social media?

Some argue that calculating the ROI of social media is impossible! Some businesses, similar to traditional billboard advertising, launch social media campaigns and hope for the best, hoping that something positive would come of their efforts.

ROI is difficult for marketers to comprehend and manage for a variety of reasons. For starters, marketers don’t do a good job of knowing what they’ve spent their money on. Second, marketers aren’t very good at comprehending what they earned and how their labour helped a company gain money.

The computation appears straightforward, but it becomes complicated when you consider what goes into each component of the equation.

If you find it difficult to calculate the ROI of Social media then you can go for the digital marketing company in Delhi.

How to Calculate Social Media ROI?

We’ve discussed why it’s historically tough to quantify social media ROI and where social media fits into the larger marketing landscape. So now the question is how we can calculate the Social Media ROI?


Align Social Media Goals with Business Objectives

You previously conducted a social media campaign only for the goal of “raising awareness.”

It’s completely fine. When there were just two or three viable social media platforms to choose from, or only a few strategies to deploy, that might have sufficed.

But now there are so many platforms for us to deliver our message, so many various methods for communicating with our audience, and so many tools for tracking and measuring our performance.

Make sure to set measurable targets for each goal

It is a crucial point. Just make aim, define clear, quantifiable benchmarks. At this point, the goals may not even be related to social sites. We are currently generating targets that will be utilised to construct our social media strategy and analyse ROI.

The objective is to set goals that are directly related to your business goals and can then be used to not only educate but also evaluate your social approach.

Choose the Most Important “Return” Metrics

At this stage, we identify the business and social media KPIs that are most closely related to or may contribute to the achievement of our objectives.

Once you’ve identified the metrics you want to monitor, you should compare them to your company’s goals and measurable objectives.

Make certain that they are actually a measure of success that facilitates decision-making and not just another data point. Less is more at times.

Determine Your Social Media Expenses

The cost of a social media campaign is often underestimated, but it is a critical variable in the social media ROI equation.

It should be noted that some of these costs may be split by numerous campaigns, so here you need to make sure you allocate the right amount to your campaign.

What Is the Best Way to Report on Social Media ROI?

Now that you’ve decided which metrics and costs to track, it’s time to keep track of them and report on them on a regular basis.

Keep in mind that there may be a large number of people in this room. You may be reporting to your marketing team, corporate executives, or a client.

Here are a few best practices for reporting social media ROI:

Include Business Goals

Include the important business objectives that you’re working toward at the start of each report. In this manner, when analysing the data in your report, everyone will be on the same page.

Keep Things Simple

Use simple language and just report on the key metrics that are most closely related to business objectives. Don’t overload your audience or yourself with data and all.


Consistency is essential.

Choose and stick to a reporting period. For instance, You can set a time of two week or first or last of each month, or whatever suits you. In this way, you and your audience will gain each other’s trust and establish a comfortable rhythm.

Recognize and Communicate “The Why”

Data for the sake of data does not assist anyone in making better judgments. When preparing reports, be sure you can explain why each data piece was included and back it up.

Use a Social Media Analytics Tool

Keyhole, a social media tool, can help you track and report on your social media ROI. It consolidates all of your data into a single, easy-to-read dashboard and allows you to integrate data from all of your social sites.

Check out Analytics Reporting for Marketers for more information on analytics reporting.

If you find it difficult, you can go for an SEO Agency in Delhi who can help you with social media.

Key Social Media ROI Statistics

Do you want to know what it’s like for other marketers to track revenue? Here are four social media ROI figures to help you contextualise your efforts:

  • In the United States alone, paid social advertising is anticipated to cost $48.94 billion in 2021, representing a 21.3 percent growth year on year.
  • Only 34% of questioned marketers were confident in their capacity to quantify social media success, while 30% did not believe they could measure their performance at all.
  • Instagram is one of the most used social media apps. It is used by 83% of people to discover new products, and 81% use it to research products and services.
  • Social media is the leading impact channel for 54% of Gen Z, surpassing website

The Final words

Measuring the ROI of paid social media efforts may be more precise than organic marketing.

However, the worth of your brand’s social media presence is crucial for any type of campaign.

The importance of measuring ROI in social media marketing has evolved to the point where it is an integral component of any marketing team’s daily agenda. Previously, a simple social media presence was only a box for brands to check; but, today, how brands exploit social media may have a significant impact on the overall success of their organisation.