The importance of social media in any business strategy is undeniable. As social media campaigns continue to influence the way digital marketing operates, it is becoming essential for all businesses to develop robust social media strategies. But, more importantly, it is essential that these strategies demonstrate a sound Return on Investment (ROI).

What is social media ROI?

Put simply, social media ROI is a calculation of the amount of profit generated from social media investments. Higher values indicate more efficient investments. Businesses need to calculate their social media ROI to demonstrate the investments are being spent in the most efficient way.

The initial calculation is simple enough:

Profit / Investment x 100 = social media ROI %

But there are many layers to social media ROI and the calculation doesn’t tend to end there. It all depends on the objectives you have set for your social media strategy. Whether you’re hoping to increase your followers, sell more products, boost traffic to your site or get more customers into your store, defining the goals for your strategy will dictate how you calculate the effectiveness of your investment.

For example, imagine that you just gained 200 new Facebook followers after a successful campaign. Using social media ROI, it is possible to analyse how many of these followers

have converted into sales, which in turn demonstrates the financial effectiveness of the campaign.

Why is it important?

As competition online increases, businesses are having to step up their marketing game to reach their target audience. While it’s often easy enough to pour resources into social media campaigns, the difficulty comes in ensuring that they are delivering the right ROI.

Regularly analysing and measuring the effectiveness of social media campaigns is a vital step in the growth of a business. It means the difference between a wasted budget and a successful investment. Understanding the impact of your social media strategies will not only boost your revenue but it will also push your business ahead of the competition.

Isn’t it time you started measuring your social media ROI?

If you would like to find out how social media ROI can help your brand, get in touch for a free consultation today. Call us on 01202 948423 or email us at to see how we can get your business the traffic it needs.