As social media is becoming a central part of digital marketing, it’s becoming increasingly important to allocate more of your budget into developing sound social media strategies while demonstrating their Return On Investment (ROI).
What Is Social Media ROI?
How to Calculate Your Social Media ROI
Profit / Investment x 100 = social media ROI %
Investment - the total cost of your social media marketing efforts, for example the money you invested in Facebook ads to reach a specific goal
The Importance of Measuring Your Social Media ROI
Analyzing your social media revenue can enable you to support budget requests by showing that your investments are beneficial to the company. On the other hand, if your ROI is low, it can help you pinpoint the inefficiencies of your social media strategy and start making improvements. This proves that measuring ROI is integral for growth, both for the business and the marketer.
But that's not all. Measuring social media ROI can also help you determine how much value you're delivering to your audience. A high number of converting users is evidence that your messaging is relevant and compelling, which shows that quality content plays a big role in earning social media revenue.
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