With the growth of digital today, it’s impossible to leave social media
aside. Since social networking had become ubiquitous and popular with an
enormous number of various and sundry users all over the globe, savvy marketers
snatched an opportunity to turn it into an efficient instrument to develop
business. Being originally just a promotion of services and products, it has
been transformed into a fully functional type of digital marketing with its own
tools and specific strategies.
If you are reading this post, you probably have already stepped into a
promising world of Digital Marketing. It makes no odds, whether you are a
newbie or a pro, it’s necessary to know what may have a meaningful effect on
conducting social media marketing activities.
Working out strategies, defining the key audience, tactics to increase conversions, generating leads, creating content, etc. are, without doubt, things of high importance. Let’s assume, that you are already paying due attention to all these moments and manage to do it successfully, and turn to the vital one.
Whatever you do, you definitely have in mind some aims to pursue and the
intended results to be obtained. Any business activity is defined by its
results, every business activity needs investment, every investment should pay
off. The payoff is the result of your work. You should always know what you do
and where it will bring you to, hence, it’s necessary to constantly track the
ROI and its role in social media
Some people could probably say that social networking is all about relations; establishing and building relationships are things that can’t be measured. As a result, they run their social media campaigns in the dark, relying on their gut feeling. But we are not about measuring relations, we are about measuring metrics; let’s see what is possible to measure in social.
When it comes to social media marketing, the main performance measure to
be evaluated is ROI. ROI (or return on investment) is a metric that shows how
much money you gain or lose while running a campaign in comparison to how much
money you invest in advertising.
Measuring ROI will give you insights on identifying what you try to
harvest from your social media presence and how to improve your campaigns to
engage more customers.
Steps to calculate ROI
In order to discover how your social media campaign performs, you should pay attention to several important metrics, such as CPC, CTR, conversions.
The process of social media ROI calculation can be boiled down to three
Firstly, it’s necessary to evaluate your engagement, it can be done by
measuring the number of likes and follows. The next stage refers to learning
about your audience, that is, the calculation of CPC and CTR. The last and the
most essential step refers to conversions, that is, to motivation to buy or to
take specific actions, such as downloads and installations.
How to measure
You do not have to waste time and effort carrying out all calculations manually, there are a lot of tools designed to assist you in this process.
Facebook Pixel is a special code placed on your website; it collects
data on visitors come with this platform. The tool helps track conversions from
ads in order to optimize them and to build a targeted audience for them.
Sprout Social is an instrument that provides data on impressions and
engagement rates across several social platforms.
Google Analytics is a useful tool that gives a lot of data on the impact
of social actions, campaign performance, which content is the most popular, and
what exactly leads to conversions.
How to increase your ROI
There are a lot of various ways to improve your ROI in terms of optimizing ad campaigns and adapting strategies, etc. But content is king. Crafting relevant content is essential. Since it can be difficult to create authentic, engaging, and up-to-date content, it should be curated. You can search for relevant articles, news, videos, pictures, etc. to share with your audience.
Constant searching for info, tracking and paying attention to what you
should be focusing on, setting the right goals, and experimenting with new
things are also necessary actions to improve your social ROI.
If you don’t measure your social media ROI so far, it’s high time to get
started. As you can see, it is the only way to prove that your efforts pay off,
that is, to find out whether social media is worth the time and money you
contribute to it and to discover what works best.