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Glossary keyword - Social Media ROI

Social Media ROI

Social media ROI is a measurement factor that defines the efficiency of social media marketing campaigns based on earnings. ROI stands for return on investment, and it is based on a financial formula which is:

ROI = ((Return minus Investment) / Investment percentage)

What Affects SM ROI?

That means if companies increase their return while keeping investments the same, they will improve the ROI. On the other hand, if a company decreases its return without changing the investments, it would decrease the ROI. As the ROI formula uses only two measurement indicators, it is easy to measure social media marketing campaigns for companies. A marketing campaign that generates a high return on investments is a better and more efficient one.

ROI=Goal of the Social Media Campaign?

Social media ROI is the return of the goals that you have on social media. Social media return can be defined differently for various people and agencies because their goals may vary. In reality, SM ROI is the value that people derive from their SM campaigns.

For instance, if a user’s target is to drive sales for his/her company, then the end goal would be a number of sales that they could attribute to the social media campaign that they hold. In another example, if the user’s goal is to drive customer insights, then his or her SM ROI would be equal to the number of customer insights that they can generate from social media campaigns. The third example can be about brand awareness. If the user’s insight is about enhancing his/her brand, then their goal or the SM ROI would be about the amount of social media users that get to know their brands. Based on the intention of the campaign, people get social media ROI. It is better to note that the number of subscribers, followers, and comments on the posts are not considered to be a social media campaign goals.

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