social media ROI

Social Media ROI: A Guide by the Best Social Media Agency in the US

It’s no secret that social media is a powerful place to drive ROI (Return on Investment) with the help of the best social media agency in the US. Despite that, not everyone is able to calculate social media ROI.

According to Statista, 34% of marketers are uncertain about their ability to measure the ROI of their social media marketing efforts. Only 30% believe they are able to measure social media ROI.

social media ROI

As a digital marketer who wants to learn social media ad campaigns, you should be able to track and calculate your social media ROI. It reflects the value of your social campaigns in money, so you can optimize the strategies that work and avoid those that don’t.

That being said, let’s dive deeper into this guide and understand everything about social media ROI.

Social Media ROI Explained by the Best Social media Agency in the US

First of all, let’s understand what social media ROI is. Like any other metric that refers to the term ROI, social media ROI is the value of your social media activities divided by the investment you made in those activities. The formula is:

Social media ROI = (Return – investment) /investment made X 100

When your social media ROI is more than 0%, then you’re making money from your social media campaigns. Anything below zero means you are losing money and need to learn digital marketing strategy.

Why Social Media ROI Matters?

There are several reasons why social media ROI should be a priority for marketers, brands, and the best social media marketing companies in the US. Here are some of them:

  • Plan more thought-through social media marketing strategies.
  • Identify the tactics that have the most profit relative to their cost.
  • Figure out when a social media marketing strategy isn’t working.
  • Convince stakeholders of the value of your marketing strategies.
  • Demonstrate the effectiveness of your social media marketing efforts.

CalculateYour Social Media ROIwith the Best Social Media Agency in the US

Social media ROI is usually calculated in terms of monetary value. However, in some cases where the impact on revenue is not easy to attribute, it can be quantified by non-monetary metrics. For instance, if the goal of a paid campaign by one of the best social media marketing companies in the US on social media is to boost brand awareness, social media ROI could be calculated by growth in follower count or post-impressions.

Follow these steps to measure your social media ROI and learn social media ad campaigns.

Step 1: Choose a Goal and then Track it

Whether you are running a social media campaign to grow brand awareness, deliver a good customer experience, or generate more leads, you should align your social media goals with your business goals. To identify the goals that matter most, sit down with the best social media marketing companies in the US.

Now, start tracking these goals. You can use tools like Google Analytics to track different website actions, such as sales, downloads, and sign-ups. For social media interactions like shares, likes, and follows, Buffer is a great tool.

Step 2: Define Important ROI Metrics

Identify social media metrics that are most closely aligned to your business goals, so you can learn digital marketing strategy. For instance, if your main objective is prospecting for sales or lead generation, it might make sense to track visibility metrics, such as reach, impressions, followers, etc. And if you want to create the type of content that resonates most with your target audience, then you need to work with engagement metrics, such as average engagement rate.

In addition to such metrics, include business-centric metrics like website traffic, social media conversions, sign-ups, online reviews, customer service ratings, and business app downloads. After listing the metrics, define what you wish to track and then re-evaluate them vis-à-vis measurable objectives and business goals.

Step 3: Calculate Your Social Media Campaign’s Cost

It’s not a great idea to overlook the need to learn digital marketing strategy and calculate social media costs. So, identify all the costs associated with your social media campaign, so you can create more realistic short and long-term campaigns. This cost may include:

  • Social media efforts like research, meeting, content creation, publishing, etc.
  • Tools, platforms, and software that help in social media marketing.
  • Ad spending for boosting posts, paying influencers for promoting your products/services, and running social ads and contests.

Step 4: Calculate Your Social Media ROI

Now that you know your success metrics and cost metrics, it’s time to measure your social measure ROI with the best social media agency in the US. You can use the formula mentioned above. Remember, your investments and returns are not all in dollars or euros. Still, you can use a rough ROI calculation in your planning and reporting stages. During planning, predict your returns based on the metrics you identified. Evaluate them against the costs.

Calculate Your Social Media ROI

Closing Thoughts

Congratulations, you now have all the necessary information to solve your social media ROI puzzle. Keep in mind that tracking ROI isn’t always simple. To start measuring and tracking your social media ROI, it’s a smart move to rely on the best social media agency in the US.


  1. What are the Tools to Calculate Social Media ROI?

    Facebook Ads and Google Analytics are some popular tools to track and measure social media ROI.

  2. What do Profit and Investment Mean?

    Profit is the money you make from your social media marketing efforts, and investment is the total cost of these efforts.

  3. Is it Important to Benchmark ROI for Paid Social?

    Yes, monitoring and benchmarking your ROI in the context of paid social is critical. This is because it allows you to detect and act on bigger trends when it comes to things like cost-per-click (CPC) and click-through rate (CTR).