Social Media Marketing ROI

In current era you’ll hardly find anyone without smartphone in which people search for every little thing of their need & this becomes the best opportunity to attract audience by showcasing your unique marketing strategies. Monitoring social media performance plays a major role to get success in less time. In this blog you will learn about Social Media ROI about which every professional should be aware of and implementing it in business will definitely help in long run.

What is Social Media ROI?

Social Media Return On Investment or ROI is the revenue earned through paid campaigns or advertisement that runs over different social media platforms.

It helps us in knowing how well our business or start-up awareness reach out to public which further increases the chances of getting business grow.

How to measure ROI ?

There is a known basic formula which many people use in calculating their own ROI.

ROI % = (Profit/Investment)* 100


Profit –   total returns made through social media

Investment – total money spent in running campaigns or ads on different platforms

 By measuring this we get actual figure in numbers, how good or bad the different platforms are performing.

Types of ROI measures

 There are two known metrics viz., Vanity metrics and
Actionable metrics.

  1. Vanity Metrics

This metrics actually gives you happiness as you’ll get to know data about number of followers, likes or comments or traffic arriving on your webpage irrespective of fulfilling your marketing objectives which is good for only showing on paper.

  • Actionable Metrics

This unlike vanity metrics focusses on increasing traffic over website, people signing up & buying your products or enquiring about the services you offer.

This metrics calculates the actual conversions made and by knowing that you can further work upon the weaknesses so that real objective of business is fulfilled.

Tools available to calculate Social Media ROI

There are numerous tools available which enables you to calculate ROI quickly. Among them some of are Google Analytics, Customer lifetime value calculator, Cyfe, Kissmetrics, Sked Social, Hootsuite Social ROI Calculator, Facebook Pixel, UTM parameters.


Taking your business to heights not happens in few days, instead it needs patience and consistency.

Analyse ROI report on regular basis and work upon your marketing skills to enhance the business.

1 thought on “Social Media Marketing ROI”

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