Research and Markets: ROI of Social Media: How to Improve the Return on Your Social Marketing Investment

Social Media is evidently playing a significant role in the world of business. In fact, a lot of marketers concur that any social medium has supplemented value to strengthening a particular brand. Social media can be a very useful investment for a business, however not everybody knows how to trace the importance of these social media. How important are Twitter followers? How about those periods when your business is talked about on Facebook?

Initially, you have to learn the process of social media strategy development. How will you be able to measure your ROI or return on investment if you have no idea on what steps to follow? Knowing the procedure will let you understand every step the viewpoint of ROI.

Below are the first steps you have to take to make sure that your social media plan is ready to measure ROI.

  1. A Clear Objective
Before starting any social media strategy, you will have a clear objective of what you want to accomplish. Diving into any strategy without some goals will mean social failure. Some of these objectives may include driving traffic to website, enhancing customer service, boosting online sale, improving brand awareness, lessening the cost for customer service, and enhancing customer satisfaction.

  1. Imagine Success
You will not be able to attain success through social media unless you allocate some hard number on your goals. If you are not sure what success looks like in your business, take a look market research companies or make an independent analysis to understand fully what social media can offer to your niche.

  1. Learn to measure
Once you are able to imagine what social success will be to your business, know which course you will take and how you will know that you have already attain success.

You will calculate the efficiency of your social media strategy by gathering information from different source such as the social networking websites you are marketing on and peripheral analytical tools.

Know What Is ROI and What It Is Not

Return on Investment is not metrics, but you will need metrics to calculate the value of a plan, regardless if it is driven by a social medium or otherwise. Measuring ROI is based on the number of benefits that social media has brought to your business as well as the expenses or asset connected with such strategy. ROI, at this instance, will consider the benefits of the social networking sites with a greater customer satisfaction rating given to the business.

Below are some ways to calculate the ROI of some of the famous social networking sites:


In, you will have to measure conversations, follower counts, traffic and reach. Counting followers can be easy and it can be done by looking at the quantity of direct messages and replies that you receive. This site will record the latest activity, and a social media tool will assist you in tracing older posts or contents.


In these sites, you can measure citations, links, and traffic. The measuring can be done by the use of Google Alerts for the citations, Google Webmaster Tools for inbound links, and for the traffic, Google Analytics is used.


In this site, what you can measure are fan counts, engagement, reach, and traffic. The Facebook has its analytics center called Facebook Insights, and it can be used to trace and calculate a large amount of key metrics for this site. Keep in mind that you will normally need to distinguish between traffic visiting your main website and traffic visiting your page in Facebook.

Google Plus

In Google Plus,you can measure+1s, follower counts as well as traffic. This site apparently has several good tools to help in measuring the key metrics. For instance, you can measure the outcome of +1s through Google’s Webmaster Tools.

One you are able to understand what your business want to attain through social media, then you can begin tracing variable to calculate the return on investment of your social media strategy.


Andrew May is an experienced financial and commercial attorney in Chicago. His practice, May Law, specializes in FINRA arbitration, commodities and securities. When he's not working to protect his clients' interests, Andrew enjoys sharing his financial expertise as a guest blogger. To learn more, visit

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