Knowing your return of investment on social media advertising will help you effectively manage and improve your marketing strategy, providing both useful insight into where you are going wrong, as well as your business’s most profitable strengths. The prospect of calculating your social media ROI may seem daunting, but there is actually a delightfully simple approach that can help you determine which social media outlets are bringing the most revenue and where you need to improve your efforts.
Why Measuring ROI is so Important
The main reason companies enter the social media arena is because it’s the very first place mentioned on virtually every website that is connected to marketing or business. Oftentimes, you’ll hear how certain companies have skyrocketed on social media outlets, and how you need to be active on sites such as Facebook, Pinterest, Twitter, etc. But if you’re not keeping track of what’s going on, how much is being spent and what results you are really getting, it’s difficult to say whether your efforts are paying off.
With that said, measuring your social media is important because:
● You’ll be able to determine which social media outlets are most profitable for you.
● You’ll see where you need to improve.
● You’ll have a clear idea of which specific changes are impacting your goals.
Define What You Want
Before you can truly measure your return, you need to establish your goals. They should be connected to a specific campaign and quantifiable. In a nutshell, your goals should be something you can link a numerical value to. For example:
● E-book downloads
● Email list sign-up
How to Measure Your Goals
Once you are clearly defined your goals, the next step to start tracking them. This is why it’s so important to set up goals that are based on visitors taking some sort of action. One of the easiest ways to monitor your goals is by using Google Analytics. On your Google Analytics dashboard, you first go to Acquisition>Social>Conversions. If you haven’t set up your goals yet, here is where you’ll be prompted to create them. Click on “Set Up Goals.”
Determine Which Platforms Are Best
to reach your social media goals, your strategies need to align perfectly with your platforms. Find out where your audience spends most of their time. Are they primarily on Facebook, Twitter or Instagram? When determining a target market, you need to know which platforms they prefer and exactly how much time they are spending there. this is where you will set up the goal you decided on earlier. For example, if your goal is for newsletter signups, you’ll need to create a thank you page for when someone subscribes.
You need to track the cost of ads, time spent and campaigns you’ve launched as part of your social media marketing plan. There are several ways to do this including free tools such as Google Analytics to paid program such a Simply Measured.
Review and Rethink
After you have all of the stats in front of you, then you can calculate your ROI and see the results of your marketing efforts, including what worked and what didn’t. If you weren’t satisfied with your results, we recommend trying out our social media scraper which will increase the effectiveness of your outreach.
Tracking you ROI isn’t impossible, but it does take planning and a well-organized strategy. And remember, the more organized your are, the more accurate your results will be.