• Posted on: 16 October 2018

The best possible return on investment (ROI) has become a holy grail of the social media marketing world. No wonder: high social media revenue can be great proof of the success of your strategy. If you're still wondering how to calculate it, here's everything you need to know about measuring your social media ROI:

1. What is social media ROI?

Social media ROI is a metric showing how much value you generated with your social media investments. It is usually a sum of money, but some companies view ROI as a non-monetary value such as comments or newsletter signups. What social media ROI means for your own business depends entirely on your objectives.

2. Why do you need to measure your social media ROI?

There is a number of reasons why measuring social media ROI should be a priority in your business. Keeping an eye on social media revenue can help you to:

Demonstrate the value of social media marketing to your company

Prove that your social media marketing strategies are effective

Identify areas of your strategy that are particularly successful to shift more budget towards them

Pinpoint aspects of your strategy that aren't working and fix them

Support social media budget requirements

3. How do you properly calculate social media ROI?

The most basic social media ROI formula appears as follows:

Profit / Investment x 100 = social media ROI %

Profit - the money you’ve earned from your social media marketing efforts

Investment - the total cost of your social media marketing efforts

While it's easy to apply this formula to calculate your monetary profit, things get more complicated when your investments bring intangible results - for example social media mentions or ebook downloads.


Of course, you can stop here and assume that 10 ebook downloads is what you got from investing $50 in your Facebook ads. But you can also dive deeper to find out how much money you generated through the ebook downloads.