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How to Measure Your Social Media ROI
Is there any return of investment or ROI in social media?
Is there a way to measure your social media ROI?
Why do need to measure your social media ROI?
How do you calculate and measure your social media ROI?
All these questions will be answered in this article.
The metrics that you measure must be relevant to the nuances of social networks and aligned with overall business goals. In this session, Marcus shares 24 metrics to measure social media ROI.
This video might be helpful but a bit outdated since there have been few changes over the years. No need to worry though, we have everything ready for you. But before we begin, let me show you the facts!
As eMarketer estimated that the population of Facebook alone reaches around 1.43 billion monthly users by the end of the year. In addition, mobile will account for 82.0% of Facebook’s US digital ad revenue.
As Brain Zeng stated in one of his article:
Social media spent an accounting for 13.2% of marketing budgets in 2014 based on the CMO survey. It is also said that 15% of marketers have proven a quantitative impact helped them fulfill overall marketing objectives and activities.
Steven Perlberg has stated that:
Twitter’s ad sales also will rise to $2.09 billion, accounting for 8.8% of the market.
I also have found an article from Shopify that uncovered interesting data.
- Facebook dominates as a source of social traffic and sales. Nearly two-thirds of all social media visits to Shopify stores come from Facebook. Plus, an average of 85% of all orders from social media come from Facebook.
- Orders from Reddit increased 152% in 2013.
- Perhaps most interesting and surprising was community style site Polyvore which is generating the highest average order value ahead of Facebook, Pinterest and Twitter.
- Instagram which is also generating higher average orders than those same sites. This is especially impressive considering the only clickable links in Instagram are those in profile bio’s.
- Facebook has the highest conversion rate for all social media e-commerce traffic at 1.85%
IS THERE A WAY TO MEASURE YOUR SOCIAL MEDIA RETURN OF INVESTMENT (ROI)?
Yes, there are a lot of ways!
You can measure your ROI through an e-commerce tracking behavior in ways of tracking the lead generation, clicks, engagements, reach, customer acquisition, conversions and many more.
Measuring social media ROI can be done in 5 different ways:
- Direct Method
- Indirect Method
- Isolated Campaigns
- Customer Feedback
- CRM and Loyalty Programs
But before doing so analyze your marketing tools and programs. First, determine the right platforms to use.
- Facebook – There’s over a billion active user worldwide and it has campaign enabled platforms alongside that is very useful.
- Instagram – it is a marketing platform that shows more on the visual presentation and connection. This is very much appealing if showing your product or company photos is your main marketing goal.
- Google+ – This offers a more engaging opportunities if you have product or services with multiple audiences. You may connect with niche groups and communities by tailoring content share and joining in Google+ circles.
- LinkedIn – connect with industries and people in your industry. If you are planning to share a more in-depth content for your audiences, you can do so. This also works best if you are a B2B company looking for connection and engagement.
- Twitter – If you want to target audience that would love to consume information, this is the perfect platform to do campaigns and gather traffic for your business or company website.
- Pinterest – For B2C company, here’s a great tool to sell products and services by visual presentation.
You may focus on 2 to 3 platform to implement and take mastery on managing your campaigns.
WHY DO NEED TO MEASURE YOUR SOCIAL MEDIA ROI?
Social Media offers great advantage in connectivity and visibility for both small businesses and company. The best way to explain its importance is that the measurement is the basis for tactical decision and opens up opportunities for better marketing strategies.
How do you calculate and measure your social media ROI?
According to https://moz.com:
Formula for Calculating Social Media ROI:
Social Media ROI = Revenue from social media – cost of social media marketing / cost of social media marketing
You may measure it by analyzing your social media sources and reports:
- Quantitative: Based on numerical statistic reports
Click-through Rate (CTR)
- Qualitative: Based on hypotheses
Sentiment – can be measure through customer reactions and engagement on campaigns.
Conversion Drivers – the basis through textual reaction or conversation across the social media specifically regarding your company or product. There’s a tool that you may find ex. Conversation Driver
There are lots of tools out there you can use and these are just examples which can be very useful to you:
Keyhole can track hashtags, keywords, Website URL in real time which can be used for Facebook, Instagram and Twitter.
Twitter Analytics can track number of mentions, followers and followed members. It can also track timeline activity like favorite tweets, retweets and replied tweets.
TweetReach is the best tracking tool for conversations in Twitter platform exclusively.
Buffer and HootSuite are scheduling platforms that has tracking metrics.
Google Analytics can track number of visitors from different social channels and insights. And you may also use Custom Report Sharing alongside it. It also has a link shortener that can be useful for campaigns.
SocialMention is a real-time widget similar to Google Alerts which you can use exclusively for social media. It can also have the ability to analyze general sentiment.
Bitly is both a link shortener and sharetracker that help you decide if your content is shareable the across social media platforms.
Facebook Insights, thought this platform have lots of tools in it for campaigns and analytics, this tool can give you best data analytics for you Facebook Page.
Klout monitors influence and online presence for Facebook, Twitter and several channels also available.
The most important points you have to consider is to really understand what you brand, company or product requires and explore the best fit for your campaigns and analytics so you could perform at best. It’s not impossible to track awareness, traffic search rankings, sales lead and everything valuable to you. Don’t limit your idea when it comes to business. Hope this article helps! If you need bit more intuitive idea on certain platform and analytics, you may consult us.
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This post was written by David Moceri