How to Measure Social Media ROI

With the arrival of different social media platforms, the definition of business gets a boost. Unlike social media platforms like Facebook and Linkedin provide a great opportunity for business personnel to expand their business online. Other companies have different marketing strategies. Including social media platforms in their marketing strategy will earn a great ROI.


Though there are a lot of marketers in this field, only 34% of them do not know how to measure ROI in Social Media Marketing. ROI is always measured in Percentage. Being a Digital marketing agency in Kolkata, we can understand the importance of ROI in Social Media Campaigning. 

Before starting our detailed discussion, let’s have a look at what exactly Social Media Marketing is. Social media marketing means introducing your product through Social Media Platforms in the market. Because of the huge popularity of Social Media Platforms around the world, Social Media Marketing its raising its popularity.

What is ROI in Social Media Marketing:

There is a particular definition of Marketing ROI.: “Return on Marketing Investment is the contribution to profit that can be attributed to marketing, divided by the amount spent on a marketing campaign.”

Before marketing on social media and measuring the ROI, the very first thing you need to do is identify the objective of the marketing. There are Key Performance Indicators in the Social Media that will help create an awareness of your brand on the social media platforms. 

You can set up some numeric goals for the campaigns, like counting the number of applications in the campaign, amount of sign-ups, and the number of customers who showed their interest and brought the products. Because you can count all the countings, you can track your ProgressProgress in social media Campaigning. As a Social Media Marketing Company in Kolkata, we measure ROI to track our ProgressProgress. 

Measuring Methods:

There are different types of measuring the Marketing ROI. they are: 


VOL(Value Over Lifetime): 


The total amount of money your customers help to earn you on average.




That means Value Over Time* Conversion Rate. It is calculated based on your conversion rates and the worth of each social media visit. Suppose your Conversion rate is 8%, your lifetime value is $120, and your visit worth is $15.


Average Sale Value:


Average Sale Value means the value of an average buying on your website. 


There is another PPC valuation, which must spend to get the exact Social Media Results through paid ads?


There is a formula to measure ROI for Social media that is:


(Value achieved – investment made) / investment made X 100 = social media ROI


If your ROI is above 0, the investments are gaining their value, and you are making a Profit. If the ROI is negative, that means you are losing your markets. As a leading digital marketing agency, we always follow the above formula.


There are different tools available to measure Social Media ROI. They include Google Analytics, Facebook Pixel, Conversion API, and URL builder.


There are also some tricks to improve Social Media ROI. 


Gather the data:


If you have enough data in your hand, it will help you to maximize your reach. With the data in your hand, you can make your plan on the trending topics and create a strategy of your own. If you analyze the data properly, you can understand what kinds of information are connecting your audience.  


Test the Campaigns:


If you have all inputs, run a test campaign to understand the market’s needs. If you get positive responses, you can run the marketing campaigns. Otherwise, you must understand your mistakes and start with a new effort. 


Follow the Expenses:


Business needs investments and Social Media marketing. You can track your expenses to measure the positive or negative ROI. You can check out the timing you spend behind marketing, the quality of content on social media, analyze the effectiveness of social media tools, and the costs you are paying.

Reasons for Failure:

There are several reasons behind the failure of social media marketing. So to gain ROI, you should avoid the errors. From a survey, we can notice that only 64% of the marketers discuss with business executives on ROI, and also, they don’t consult with the seniors. Too much advertising on social media, poor customer service, and poor quality content are the other reasons for the failure of social media marketing, which ruins the ROI also. Being a leading digital marketing agency in Kolkata, we try to avoid those errors.


Your business approach will be successful when you are making profits. To do a business properly, you need an appropriate marketing strategy. Effective  Social media marketing strategy is one of them. You have to measure ROI to confirm whether your plans are working or not. It indicates your weak points and allows you to improve your loopholes.  


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