How To Measure ROI Of Social Media

– Social Media ROI is arguably one of the hardest to
measure in digital marketing. It’s hard to tell how much you can earn from a single Instagram post, or if a Snapchat can
boost your sales numbers. According to Convince and Convert more than 41% of businesses
don’t even know if their Social Media efforts are
actually paying for themselves. Social Media ROI isn’t
always easy to identify, but it’s not impossible either. In fact at the end of this video, I’m giving you an ROI
calculator spreadsheet. This is seriously the coolest thing I’ve ever given away for free. There are three tabs on the
spreadsheet to track your costs, your earnings and the third tab that just calculates it all for you. I don’t know about you
but I don’t like math, this thing is amazing. So click the link below to download that. To track your returns
you need to understand what Social Media ROI is, it’s
relevance to your business and how to effectively measure it. (upbeat music) So what is Social media ROI? ROI, or Return On Investment has it’s roots in business and finance. It’s used to identify dollar
returns on dollars invested. It’s to identify what you’ll
get back from the time, efforts and resources
you commit to Social. For social Media you want to
understand the amount of return you get from all your Social
Media marketing initiatives. This means you have to
understand how much you invest in your Social Media efforts
and how much money your Social Media achievements are worth. By understanding your Social Media ROI, you’ll be able to avoid
wasting time on social efforts that just aren’t working,
you’ll be able to channel where your energy is most needed and you can which Social
Media platforms work best to give you the bast bang for your buck. A clothing brand for example, may get better results just by
simply focusing their entire Social Media marketing efforts
on Instagram, or Pinterest. While the restaurant may work best with an active Facebook presence. Simply put your Social Media
ROI as your best advisor on what works and what doesn’t. How to measure your Social Media ROI. First of all, I want
you to get the download in the link below, your
entire Social Media calculator right in one spreadsheet, go get it. Step one, earnings, define,
measure and track your goals. Before you measure your return, you need to understand your objectives, these should be quantifiable
and linked to your campaigns. In simpler terms, make sure
you can assign a number to it. These could be either purchases, downloads, email list, registrations, etc. For your goals, make sure
they’re called to actions that your customers would do,
don’t prevent any metrics, shares and likes are great, but they shouldn’t be your main goal. Once you’ve defined your goal, the next step is to track them. The tracking part is really important so you can understand how your followers are responding to your
Social Media efforts. The easiest way to track is
through Google Analytics. You can use this to set
up goals and understand how each goal can contribute
to each performance. You can put dollar amounts
on each successful goal that wasn’t reached, enabling
you to determine how much you earned for each Social
Media marketing effort. Step two, cost. Track how much you’ve spent. In order to figure out
whether you’re generating positive or negative ROI through
your Social Media campaign, you’ll have to measure
how much you are spending. Here are the key figures that should be part of your calculations. Man hours, place a dollar value
on every hour of work done for your Social Media efforts. Content development cost, how much did you spend on
developing your content, did you hire a graphic
designer, or a writer to help, keep that in mind. Social Media tools, factor
in additional tools you used for tracking your Social
Media performance. Advertising cost, how much did
that sponsored post cost you? Step three, calculate your return. Once you have your returns
and costs figured out, it’s time to calculate your return. Calculate your net profit
minus your total investment. You can calculate your Social Media ROI for each platform you want. After looking at the results,
you will be able to decide which social platforms and
efforts you should focus on, and which you may want to abandon. But beyond these numbers
you also need to understand the secondary results of your efforts. For example, your users
may be creating awareness and users generate content
that others are seeing. While it’s to difficult
to measure these results, they can also positively impact your ROI. Measuring your Social Media
ROI is not impossible, you just need to understand the numbers and their impact to your performance. As I mentioned, I have an entire
ROI calculator spreadsheet you can download for
free in the link below, seriously this is the coolest thing I’ve ever given away for free. It already lists all the
categories you needing to enter in for your costs, your earnings and it calculates it all for you. Don’t forget to also measure the intangible benefits
of your initiatives, though they may not directly
contribute monetary value, they can also indirectly effect your ROI. If you wanna learn more about
the other Social Media metrics to help you succeed in
Social Media marketing, you can download my free
and insightful guide, Numbers Tell a Story: Social
Media Metrics Made Easy, thanks for watching,
if you like this video, hit the thumbs up, comment below
or share this with a friend you think this information may benefit and of course subscribe
for more weekly videos. Social Media ROI isn’t the old (beep) Social Media ROI isn’t (beep) To track your returns you
need to understand what social (beep) God, why can’t I say that line?

28 thoughts on “How To Measure ROI Of Social Media

  1. Hi Marley, you're absolutely right most small businesses I know just post what they think is interesting without really considering (a) if it is relevant (b) if it aligns with their overall brand message and (c) how to track the ROI. Great video!

  2. Great information. I only spend money and most of my time on the social media accounts that produce the best results.

  3. Love this info. Someone was just talking to me about this. Your info was of course better.
    It was about a matter of ROI vs. ROE. (Return of Ego). Do you feel that egos interfere with the actual ROI and how do you remain objective when it comes to developing social media content?

    Thanks for reading

  4. Ahh there is a formula for just about everything, isn't there! Didn't know you could track social media ROI that well. Nice vid!

  5. Wow, excel is way more versatile then I ever thought. Thanks for the awesome advice and keep up the exceptional work. 🙂

  6. Love seeing your vision board on the right 😉 …. and so important to track everything… Thanks Marley!. Great video!

  7. Hi Marley! Love your video as usual. Would love to get the source of the first sate you give about the fact that only 41% of businesses know if their efforts pay or not. I would use it for a workshop I'm preparing. Merci!" 😉

  8. Great job explaining ROI! Honestly at first I was thinking you were going to explain it just like every other marketer but you surprised me when you talked about secondary metrics. Nice! I plan on checking out your downloads! Thanks for sharing this.

  9. Loved your video, really appreciated it, but please make sure your intro music isn't so much louder than you talking.

    Really liked your explanation though

  10. Great video! The Promo team recently wrote a blog about social media metrics that could be helpful to people looking for another resource related to this topic. Check it out here:
    Hope it helps and happy reading!

Leave a Reply

Your email address will not be published. Required fields are marked *