For businesses, social media is not just restricted to scheduling posts on time and maintaining an online presence anymore. Today, it is more about how the platform can contribute to generating revenue for the company.

A lot of time and energy is invested in creating a strategy, writing and designing posts and implementing campaigns. And the unfortunate bit is that the social media efforts were not quantified until recently when “social media ROI” started creating a buzz in the industry.

What is this term mean?

According to Social Media Examiner, social media ROI is a measure of efficiency of a social media marketing campaign. In simple words, it shows how much monetary return the company gets from all the resources it spends on social media. There are 5 most common metrics that are tracked to calculate the ROI, which are:

  • Reach
  • Site traffic
  • Leads generated
  • Sign-ups and conversions
  • Revenue generated

An article published on Pagemodo suggests that one should refer to the internal analytics to better understand the conversion events (such as sign-ups, app downloads and purchases) that happened when a particular social media campaign was running.

Did you know that companies spend only 2.3% of their marketing spends on measuring ROI? This is because measuring the social media impact requires heavy investments such as dedicated staff, tools and technology, customer databases, etc. and most companies are not ready to undertake this expenditure!

Benefits of measuring social media ROI

As a marketer, you don’t have the option of defining the ROI anymore. In this age and time, you have to! It is imperative that you measure it. A simple formula to do is:

Social media ROI = (SM return – SM investment) / SM investment percent

Measuring the social media ROI is essential for countless reasons:

  • To prove the value of social media to your company’s goals and business objectives
  • To pin-point the areas where the resources are being used efficiently
  • To evaluate channels where the resources are being wasted
  • To allow you to recognize gaps in key messaging and strategy

Tips to keep in mind regarding social media ROI

1. Define a goal

Ask yourself: “What do you hope to achieve with your social media campaign?” You can’t move forward until you know exactly why you are planning to run a campaign. In fact, you will get confused because there are way too many goals and actions to track in a campaign.

Therefore, it is necessary to have a business objective set in your mind that is subsequently met through your social media efforts. Keep goals that can be measured such as email signups, form submissions, website traffic, app downloads, etc.

Once you have fixed that, give your goal a conversion rate. For example, how much does each form submission value?

Most common method of calculating your “goal” is through:

  • Average sale – which is the average value of your customers purchases
  • Customer lifetime value x average conversion rate

For instance:

Your customer lifetime value = INR 100

People who sign up and make a purchase = 0.5%

Therefore, the value of every new email signup is INR 0.50.

If you get 1,200 new email signups through the social media campaign, then you earn a total of INR 600. Add this amount to the total social media expenditure for both FB & Twitter which is INR 350.

Therefore, your social media ROI = (INR 600 – INR 350) / INR 350 * 100= 71.43%

2. Track your campaigns

Once you set the value, track! Most social media platforms offer a tracking pixel that can be added to the website so that you measure the conversion rates accurately. Be selective about what you track because this is where the monetary value of the measurements come into the picture.

For instance: if you are tracking the converted buyers of your tickets, then with the help of tracking pixels, your dashboard will automatically show the number of people who purchased your tickets. You can easily calculate the Cost per Acquisition (CPA). And if the CPA was less than the cost of your ticket, then you have made your profits!

But wait a second, there are other indirect expenses you must also consider:

  • Advertising budget
  • Paid labor: Did you pay someone to manage your social media?
  • Graphic designing expenditure
  • Tool costs: Are you using paid tools to hold campaigns?

3. Report your findings

Once you have tracked your campaign and extracted all sorts of information, the next step is to put together the data in a structured format. Because unless you do that, essential findings will be lost and your efforts will be in vain.



Therefore, you need to determine a way to report your results. You will have to come up with a timeframe that makes sense. It can be weekly, monthly or quarterly – whatever you find convenient. A perfect report would be one that includes platform distribution, along with qualitative and quantitative metrics and results for specific social media channels.



Review reports and reset goals

Once you have the figures in front of you, you can easily calculate your social media ROI and check what worked in the campaign and what didn’t. Review the report thoroughly. There will be mistakes, but the key is to not get disheartened. Instead, try to conduct different types of campaigns frequently, so that you can actually put a finger on what your audience likes best.

Till then, keep experimenting with the campaigns, define varied metrics and gauge from the results of individual posts or campaigns. Soon, you will observe that your social activities are being noticed more than ever and there is a gradual increase in your shared content both through your website as well as on your social platforms.

How can Adalyze help?

If you are looking for one tool that can provide insights for multiple platforms, then Adalyz can do that for you! It is a powerful analytics and reporting platform that helps digital marketers get a unified view of their ad Campaigns across different social media platforms. It offers 3 major benefits:

1. Multiple platforms, unified dashboard:So you are running multiple campaigns on both Facebook and Google and you want to be able to track the performance of your posts. What do you do? Log in to their separate dashboards. But not if you use Adalyz, where you need to log in to just one tool.



2. Apply filters:You can quickly identify campaigns you want to focus on using powerful filter criteria. Adalyz can pull in historical data, so that you can compare campaigns from last month, quarter or year with the current one’s and make data driven decisions.

3. Smart folders:You have the option to add campaigns from social channels of your choice to smart folders to compare, organize or to simply reporting. It also ensures easier generation of common insights and hidden trends.



Adalyz can be integrated with Google, Facebook and Instagram to run and compare campaigns.


Social media is fun. It is a great way to engage with your audience. But what’s the point of putting so much energy into when you don’t generate revenue for your business. Therefore, make the most of this platform and attain a high ROI.