Measure the Social Media ROI that your campaigns are generating with this online calculator. Evaluate what KPIs you want, measure them and strategise.
The acronym ROI stands for Return on investment. You can easily calculate it on social networks. You can get multiple info about online marketing campaigns if you measure them correctly. Have you launched a paid campaign on Facebook or another social network where your target audience is located? Then this tool is very valuable to find out what is the return on investment on it. If you want to calculate the ROI of your social media actions you can use this online marketing calculator.
How to calculate the social media ROI
Among the different types of marketing, we find online marketing that includes the social network marketing strategy. When you launch an action of these characteristics to sell more without calculating the ROI and calculating the engagement it is complicated to determine if the strategy has been worthwhile or not.
Finding out what the return on investment of social networks implies knowing how well a brand is performing after the time, money and resources invested in a given action or campaign and quantifying whether it has been profitable. Before knowing how our online calculator works, we show you the formula to calculate the social media return on investment:
Social Media ROI = (Total Income – Total Investment) / Total Investment
How to use the Social Media ROI Calculator
You can use the ROI calculator to analyze your KPIs by adding the conversions of the different social networks in which the brand has a presence and thus calculate which social network offers you the highest return on investment.
On the one hand you can calculate the profitability of your social media actions and on the other hand you have to take into account the investment data. Let us see how this is done step by step:
- First, to calculate the profitability of a specific action, enter the total number of visits to the campaign on Facebook, Instagram or any other social network.
- Now add the landing page conversion rate. Calculate the conversion rate by dividing the number of emails collected in the database of the campaign by the number of page views on the landing page.
- What is the campaign’s closing rate? Enter the percentage.
- Indicate the value/customer you think will be generated to the company.
- Now to calculate the investment you have to fill in: the total advertising expenditure, the cost of creating the content and the labour cost of the total working hours of all the team members.
- By processing all the information and applying the social media ROI formula you will also get the number of leads, the number of sales and the total revenue.
Why measure the return of investment in social media?
You will be more efficient in meeting short and long term objectives; enact a strategy that will improve your work; see that social network is generating more engagement, and more income; Finally you will optimize your efforts better and you will not waste time with unnecessary actions.
What are the most interesting KPI’s to analyze for ROI?
Engagement, reach, conversion rate, bounce rate, impressions and visits. Once you have all this data under control, it is basic that you decide which tools you are going to use to measure the ROI.
How do you track Social Media ROI?
Identify your objectives; analyze your key performance indicator; use tools to automate and measure your social media actions; concentrate your activities on social networks where your target audience is located; evaluate your costs and calculate the return on investment. Finally, find the strategy that will improve your results.
