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Social Media Return on Investment (ROI) is simply measuring the value that we got from our social media campaign to determine which social media marketing efforts are working.
How to measure Social Media ROI
ROI = (return – investment) / investment
This straightforward formula has just the two parts: Return and Investment. Buffer blog explains in detail the different methods to tackle the monetary side of ROI.
Keep in mind that setting goals and objective should be measurable and attainable and make sure you choose the right metrics to measure your social media campaign success.
Social Media Examiner discussed in details the different Metrics to track Social Media Success and how campaign performance helps determine which tactics are working.
Social Media ROI Challenge
In an eConsultancy survey conducted by Convinced and Convert, 41% of the respondents have absolutely no idea of social media’s financial impact.
Another social media survey by MarketingProfs: 47% of respondents say social media measurement is important to them; another 36% say it is somewhat important.
A further survey made with 70% of respondents to determine social media’s return on investment (ROI) and most marketers say their companies are not adequately measuring the impact of social media campaigns.
Why you should Measure ROI