By continuing to read the post you will find aspects or different elements that are used in the calculation or investment that you can use to obtain results as part of paid advertising, keep reading!
How to calculate ROI on social media campaigns
Table of contents
1 What is return on investment?
2 How to calculate ROI on social media?
2.1 Define social channel objectives
2.2 Track metrics
2.3 Calculate social media costs
2.4 Calculate or estimate ROI
2.5 Create an ROI report
2.6
3 How to know if the social media ROI calculator works?
3.1 Likes and followers
3.2 Understanding CTR and Impression Ratio
3.3 Measuring influence
4 Where can I get advice on using ROI or return on investment?
What is return on investment?
Known as the return on investment or calculation focused on knowing about the success or effectiveness of any campaign .
Therefore, it is a reference measure that serves to quantify the income received from advertisements or social media marketing strategies. To do this, formulas can be used to perform the calculation , such as:
— ROI social networks : (Value generated on social networks – Investment costs/costs)* 100
Each of the elements of the formula has a specific meaning, such as: value generated by social networks , a definition related to the value according to the company, which includes sales, customers, cost savings.
Another factor will be social media investment costs linked to content investment, employee salaries and tool subscriptions.
From there, an ROI greater than 0 means that the values obtained have been positive and favorable , while a negative ROI means that you have invested more without receiving profits.
In this way, metrics are used to determine whether the investment has generated profits or losses depending on the type of investment you make. It is advisable to learn to plan in order to know and determine the tangible results.
How to calculate ROI on social media?
The way or method of calculating ROI varies from one company to another. Therefore, to measure ROI, objectives and priorities or brand awareness as well as customer satisfaction must be identified.
To do this, you can include or select the following parameters that will be a reference to quantify and measure the ROI:
Define social channel goals
You will need to identify and understand the business, from there you gambling data brazil phone number can select the main objectives and focus on boosting the brand. For example, there are:
Increase and foster brand awareness
Build audience loyalty
Improve customer service
Optimizing job satisfaction
As mentioned in the list , social media is not only used to generate direct income, but can also be used to validate brand awareness and foster relationships with partners.
Track metrics
By monitoring social media statistics, which are checked by reviewing essential metrics to understand the approach in relation to:
Interaction
Scope
Website visits
Contacts generated
Newsletter subscription
Calculate social media costs
By quantifying the value based on metrics, you will have an estimate of the cost required for each content schedule. Typically, expenses include:
Tools for subscribing and using social networks.
Estimated budget for each advertising campaign.
Costs related to the team you manage or payment to the respective agencies.
Calculate or estimate ROI
You can use the formula mentioned above to calculate manually. You can also use the following Marketing Tool calculator.
By using the calculator, you can make its management effective and favorable, depending on the needs or requirements of each style or type of advertising campaign.
Create an ROI report
Keep track or check the metrics that are generated during your social channel monitoring efforts. To do this, you can use different ways or methods to manage it:
Use or employ a template.
Language related to metrics.
Check business results and objectives.
Check the KPI as a measure of progress.
Identify limitations or possible improvements.
How to know if the social media ROI calculator works?
To verify the function and proper use of the calculator you can prioritize aspects such as:
Likes and followers
Focused on quantifying followers related to social networks. If you prefer, you can use a spreadsheet to quantify the growth and fans you collect according to the type of campaigns.
In this way, you will learn to measure and manage the different conversions or types of changes that are obtained according to the style or type of brand.
Understanding CTR and Impression Ratio
Determined by click ratios, depending on the type of advertisement . It is appropriate to identify the proportion and volume of clicks, given by a metric that relates to the type or quantity of clicks generated during each visit.
Measuring influence
It is given by digital brand influence that serves to identify the positive impact and the ease of connecting with interests or connecting with the specific target audience or aligned with the sector.
Where can I get advice on using ROI or return on investment?
At our Digital Agency , you can get personalized help and advice to guide you in making calculations that generate benefits and fit the type of campaign. If you have any questions, you can contact us and schedule any meeting, just ask us!