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Updated: May 26, 2022

For years, businesses have struggled to wrap their head around their social media ROI. At The Marketing Bungalow, we understand that trying to measure the return on metrics such as engagement can feel like a guessing game. Furthermore, not everything on social media translates directly into revenue – yielding even more question marks. Digital marketing requires time and resources, and businesses need to be held accountable for the costs they put into this effort. Using our expertise in social media and digital marketing, we have compiled this guide as your go-to resource to help you better understand what goes into social ROI and how we can help you improve it!

Why Social ROI Matters

Some businesses can invest hours upon hours into social media and only get a few vanity metrics in return – while others can absolutely kill it with paid and organic campaigns alike. We believe that if you can measure it, you can manage it. Learning how to measure your social ROI can help inform you on how to improve your campaigns for better engagement, while also making the most of the time you spend on digital marketing. To do that, it is necessary to define your goals for your online presence.

The Purpose of Social Media for Your Brand

The social media presence for one business will never look exactly like that of another. It’s important to first define the purpose of your brand’s social presence. Are you trying to push products? Is your goal to raise brand awareness? What about establishing connections with your community? There is no single way to use social media effectively, but your brand will benefit from a strategy that is tailored to its needs by a creative digital agency.

Set Actionable Goals

Measuring your social ROI requires a more intensive attention to measurements other than vanity metrics such as views, clicks, or likes. The main goals for your social media presence should revolve around defined actions that convert casual browsers into paying customers, such as clicks that result in sales or other meaningful interactions. We are able to run campaigns that track customer interaction through individual links, providing you with the necessary data to understand the effectiveness of your social media presence.

Track Your Social Media Expenses

All the time and effort that goes into tracking social ROI is meaningless without also measuring the resources invested into marketing. Apart from money, you should also take the following into account:

  • Time spent per campaign

  • Outsourced content creation such as a landing page or status updates

  • Costs of any social media management software per campaign

  • Ad budget

Once all expenses are calculated, you can calculate your social ROI by subtracting the costs from your earnings, then multiplying by 100 and dividing by the costs. For any campaigns bringing in a negative ROI, we can help you adjust your spending or fine-tune your campaigns to yield a positive return.

Improving Social ROI

Not only are we able to assist your business with measuring your social ROI, but we can also improve it, too! Much of this industry boils down to metrics, and we can mine through your data to streamline your social media presence and campaigns. By bringing in more data, we can maximize your reach and get a better ROI. Furthermore, we utilize an array of analytic tools to always have our finger to your brand’s pulse.

Understanding the fruits of your social media labour does not have to be such a nebulous affair. The Marketing Bungalow is your leading southern Sydney creative agency to help you define your marketing goals and measure your social ROI. Not only will we ensure that your campaigns stay goal-focused, but we also make sure that no resources are going to waste on inefficient applications. Give us a call today to better understand how we can help your social media presence take off!


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