Calculate social media marketing ROI

[Reyed Mia (Apprentice, DIU)]

Calculate social media marketing ROI

Calculating Social Media Marketing ROI. We can calculate social media marketing ROI if we have set goals in line with our business strategy. If we're using the right social media platform, that means the right platform for our target audience, and business strategy, and achieving our objectives. And we can measure what matters, that is against those objectives, that is about achieving that business strategy. So, let's have a look at the calculation. To calculate social media ROI, we'd need to know the revenue from social media and the cost of our social media activity.

We subtract the cost from the revenue and then divide by the cost. At its simplest, a social media ROI calculation could be completed using Google Analytics and sales data. For example, 1,000 clicks from 10 social media campaign posts on Twitter, of those 1,000 clicks, 500 converted to a lead by filling in a form on a landing page. Of those 500 leads, 100 ended up making a purchase. This means that our traffic to lead conversion ratio is 50%, and our lead to sale conversion ratio is 20%.

We know each purchase generates 100 pounds of revenue and 500 pounds of resources was allocated to the 10 campaign posts. The campaign generated 10,000 pounds of revenue, and so the ROI is 19 to one. For every one pound spent, 19 pound of profit was generated.

https://www.linkedin.com/learning/social-media-marketing-roi/calculate-social-media-marketing-roi