The Art of Gauging ROI in Social Media Marketing

Stands for Return on Investment, ROI determines the efficiency of investment by measuring the results or performance. ROI is the sum of all engagements that create value.

Types of Social Media Marketing Campaigns

Unpaid Social Media Marketing Campaigns

Regardless, you are selling products, services or creating brand awareness, setting up and running a social media marketing campaign is indispensable. Ideally, you would want to get organic quality leads without spending a penny. Of course, you have to create your brand’s profile, publish posts and engage with followers to get some leads. However, you can’t determine if and when you would get some returns on your time and efforts invested.

Paid Social Media Campaigns

Unlike organic social media marketing, here you pay to get high-quality leads that convert for your business. A paid social media campaign can be launched to drive traffic, boost engagement on your posts and drive sales for your business. Some of the paid social media campaigns are PPC advertising, influencer-generated content and display ads.

Social Media Management Expenses

Managing your brand’s social media profiles isn’t a stroll in the park. Ideally, it is best to hire a results-driven digital agency in Perth. They have a panel of qualified marketers to let you improve your ROI, save cost & sell more. There are several paid tools, such as Hootsuite and Buffer. You may need for analysing, monitor, and scheduling posts. All this helps to keep your social media investment under control.

Types of Returns on Social Media Marketing Investment

Before you commence a social media marketing campaign for your brand, you must know what types of returns you can drive from your SMM spending. There are broadly four types of returns. Let’s have a look at:

Brand Value Creation

You can create a valuable brand. But, to accomplish this, you’ll have to establish a trustworthy, unique, and relevant brand image over social media.

User Satisfaction

Although it cannot be evaluated with a tool, a satisfied customer is what lay the foundation of your brand’s public image. Without a dilemma, it is the most significant type of return that will give value for long. The more you stay connected with your customers, the more likely they will pursue you for business.

Direct Lead Generation

Driving direct leads is the ultimate goal, as you want to generate revenue for your company. This may or may not happen with organic social media campaigns.

Demand Creation

Generating brand awareness & interest in your product/service is the main purpose of demand creation. It can get taxing and you may even have to launch new products.

Process of Calculating ROI in SMM-

Step 1: Set Social Media Goals

Right before you begin a social media marketing campaign, you’ll have to determine your goals. When you know your goals, you’ll have the vision of what’s to be done next.

Step 2: Determine Right Platforms

Right from Facebook, Twitter to Instagram, you’ll have to determine on the right platform for your brand. Typically, you have to understand your audience. Finding the right platform will enable you to achieve your marketing goals. For instance, Pinterest is best if you want to promote your interior designing company as you can drive the interest of your prospective clients with real captivating photos from your portfolio.

Step 3: Track Performance of Campaigns

Keep a comprehensive check of your social media marketing campaigns such as the cost of ads, time spent, views, likes and comments. You can also use social media analytical tools for real-time monitoring of your campaigns.

Step 4: Report Findings

Whether you are working on someone else’s social media profiles or your brand, you must make it a habit to make use of unique reporting templates provided online for Pinterest, Twitter, Linkedin, and other platforms. Reports let you analyse the data more effectively and compare past performance with the current data.

Step 5: Review Results and Reset Goals

Finally, calculate the ROI with this formula Amount Gained (Profit) – Amount Spent x 100 / Amount Spent = ROI %

Let's Wrap Up

Whatever your marketing goals are and budget is, we have the experts to provide guidance for improving social media marketing in Perth  for your brand. Ask for a Custom Quote Today!

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