I was having a conversation the other day with a good friend of mine and he wanted to know if it was possible to measure the ROI on a Social Media Campaign. In this post i’ll cover
The Value of a Social Media Campaign
How To Measure Social Media ROI
However, should we really be measuring the ROI on Social Media ?
Why Every Firm Should be Running a Social Media Campaign
I get these questions asked quite a bit. Why should a firm run a Social Media Campaign? How will it generate Sales for my firm ? In other words the Value of running a Social Media Campaign. I’d say Everyone SHOULD have a Social Media Campaign for their firm, regardless of their size. Dont agree with me ? Thats ok, you will after you see this video from Erik Qualman from Socialnomics This video is amazing and shows everyone proven stats from firms using Social Media Successfully.
Now that you’ve watched the video, are you on board with the idea that YOU SHOULD be running a Social Media Campaign ? I know you are !
Now that you see the value of Social Media. You need to understand that Social Media is NOT FREE. So what’s required for Running and Managing a Great Social Media Campaign:
1) It takes Qualified People to run your Campaign.
2) You need the proper tools to run your campaign.
3) All of this takes Time ( Don’t expect results overnight )
How to Measure Social Media ROI
Is it Possible to measure the ROI on Social Media? Sure it is. Here’s how
ROI = (Gain From Investment – Cost of Investment) / Cost Of Investment
Eg. Lets say you spend $1000 to start your campaing and you make $4000 from sales arising from the campaign , then
ROI = (4000 – 1000 ) / 1000 = 3 times your Initial Investment ! These are just random numbers and your campaign success could vary based on number of things.
Steps to Measure the Success of Social Media Campaign
1) Look at Growth at Start of Campaign
2) Track All Activites done during Campaign
3) Measure Sales Growth from start of campaign to present
4) Use Special Landing Pages for tracking Targeted Traffic for a Campaign
I agree that one should track the ROI for their Social Campaign but not to make a big deal about it. After all do we see everyone asking for the ROI for their Ads on SuperBowl ? I hope all of you agree that Social Media Campaigns DO work and get targeted traffic to your site along with developing your online presence and increase your sales. Do Share your opionions with me below in the comments.
I hope you found this write up on Social Media ROI helpful and feel free to share your thoughts and feedback in the comments below. We do reward regular commentators with do follow links. Don’t forget to sign up for my free newsletter and follow me on twitter ( i will follow back )