Many people use social media marketing as a tool to help them grow their business, but if you don’t know whether or not your marketing is helping your business, then all the money you are spending is wasted. After all, if you don’t know how much benefit, if any, you are getting out of your social media marketing, you have no way of judging whether your investment is worthwhile. By measuring your social media ROI, you can determine whether the time and money you are putting into social media marketing is a good application of your resources.
The first step is to set goals for your marketing. You can’t measure ROI if you don’t know what you are trying to accomplish. Are you trying to boost traffic? Increase visibility? Depending on what your goals are, your ROI may be different. Once you’ve set goals, any seasoned San Diego internet marketing company will advise you to decide which social media platform is the best choice for your business. Different platforms have different user bases, so you should choose according to your target audience.
Track Your Efforts
Next you need to be able to track your marketing campaign. There are a number of ways to do this, such as Google Analytics and HootSuite. Tracking your campaign is one of the most important aspects of determining your ROI. If you don’t have data to crunch, you won’t be able to calculate anything. Once you have your data coming in, you need to pick a time frame you want to analyze and create a report. This will vary based on the duration of your campaign. You also have to find out how much money is coming in from your social media audience.
Once all of this is complete, there is a simple formula you can use to determine your ROI: ROI = (Benefit – costs) x (100) / (Costs). By using this formula, you can find out just how successful your social media campaign has been, and how to improve your future campaigns.
For more information on managing social media campaigns or other online marketing efforts, reach out to Saba, Inc. at (858) 277-1717. We’re a local San Diego SEO company specializing in social media, pay-per-click management, and web design. Call us today, we look forward to hearing from you!