ROI Of Social Media Campaigns

“There is no investment you can make which will pay you so well as the effort to scatter sunshine and good cheer through your establishment.” ~ Orison Marden


There are hundreds of different ways to measure social media, which makes it kind of difficult to wrap your mind around. To help with that, social media metrics can be broken down into three different categories.


  • Quantitative Metrics: These are the metrics that are data-intensive and number-oriented. You can really get overloaded with different metrics here, so the trick is to pick the key metrics that most influence your business and not get bogged down with the rest. Those metrics might include unique visits, page views, followers, demographics, frequency, bounce rate, length of visit or just about any other metric that’s specifically data-oriented.


  • Qualitative Metrics: These are the metrics that have an emotional component to them. For example, if 75% of the people who mention your product online call it “cheap” and only 25% call it “inexpensive,” that’s a qualitative metric that has an impact on your business. There are several companies that provide in-depth analysis of the qualitative metrics online. Some of these include RapLeaf, Nielsen and Adobe Online Marketing Suite.


  • ROI Metrics: In the world of social media, all roads should lead to ROI. After all, during business hours, social media isn’t just about being social, is it? We’re doing it to make money. And if you track what percentage of people you converted from a prospect to a customer on your e-commerce site, or how many people you converted from a prospect to a client on your B2B website, then you’ll be able to measure the success of your social media campaign on an ROI basis.

Before we go into the mathematics of calculating ROI of the social media campaign, as an organization it is very important to chalk out the business objectives that you are aiming for from the campaign. It is then important to understand the advertising objective. The advertising objective is what you want people to do when they see your ads. For example, you can create ads to get people to like your Facebook Page which is different than creating ads to encourage people to visit your website.

As we all know, Return on Investment is a function of revenue generated from the investment and the cost incurred, therefore it important to understand both the terms separately from the social media marketing standpoint.


It comprises of two parts, first the advertising cost to social media platforms like Facebook, Twitter etc. and second is the operating expenses like shipping cost, depreciation, man-hours etc.

The advertisement cost on social media depends on three factors

  • Audience
  • Schedule
  • Bid to reach the audience


This again like cost, comprises of two parts, tangible and intangible. Tangible is the actual sell of goods from the traffic that was directed from these platforms and intangible is the overall brand image the campaign has created.


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