8 Ways to Calculate ROI of your Business on Social Media Marketing

Social Media Marketing

Social Media has only been advancing since its inception and the changes within have brought forth various digital tools providing the users with all sorts of information needed these days. Realizing this, current day online marketers are utilizing social networking sites to gather relevant customers and drive profitable ROI in their business endeavors. Thus, it has become important for any company to involve social media marketing into its advertising plan.

To know if your business objectives are matching the right metrics, you need to optimize your advertising plans and this can be done with a thorough knowledge of social media analytics tools.

We understand the importance of making fair and effective decisions when it comes to advertising your products and services via social media, and how optimizing your marketing campaign with the usage of right digital tools can help you estimate your company’s ROI.

Best Ways to Calculate ROI of your Business on Social Media Marketing:

1. Website Traffic

The size of a website’s traffic is vital in estimating the effectiveness of any social media marketing drive. The increase in a number of visitors determines the extent of a campaign’s influence on its intended users. A smart and effective SEO strategy can help you drive relevant web traffic towards the website. In case the website is not getting expected amount of traffic, then you definitely need to optimize your social media marketing strategies and find out where it is lacking.

2. Track your Visitors

You can keep track of visitors who engage with your campaign by using analytics tools. This will showcase the strength of your campaign’s progress. In case the bounce rate is high, it means most of the visitors leave your site without any significant interaction. To minimize the bounce rate, you will need to change your marketing strategy and work on the targeted leads and tweak the ways of reaching out to the audience. The more people spend time on the website better will be its conversion rate.

3. Retention-Rate of your website

An engaging website means it will attract more visitors and make them stay connected with it. A website’s retention rate can be measured by calculating the number of people who revisit it. To make sure people come back to your website, you need to have relevant content since it plays a vital role in captivating audience’s attention. You can include FAQs, contact information, site map along with videos, blogs, and images for branding your business. Upload the kind of content which is informative and relevant to users so as to make it increase your business conversion rate.

4. Know the source of your visitors

To know the origin of your visitors, Google Analytics can help you get the insightful figures about your marketing campaign on various online channels. It informs you about the acquisition sections by showing the source of visitors. A successful SEO includes high organic results and a larger number of website visitors who found your brand from other channels.

5. Click-Through Rate (CTR)

CTR is used to gauge the ratio of people who see your ads and end up clicking it. It determines how well your ads and keywords are performing on the web. Display and Banner ads are useful in making the audience explore about your business and click on the given links. The effectiveness of your ads can be computed by calculating CTR of those ads.

6. CPC evaluation

CPC or Cost per Click is calculated by determining the ratio of the total cost of clicks generated on an ad with the total number of clicks. In terms of CPC evaluation, keywords play an important role in estimating the cost of each click. In case CPC is higher than conversion rate, then it is imperative to revise the usage of keywords and alter the keyword strategy altogether.

7. Cost per Lead (CPL)

CPL is the most appropriate way of calculating the success of any online marketing campaign. Cost per Lead is the ratio of total advertising money spent with the number of leads generated by a specific advertising campaign. It also helps to measure the effectiveness of a company’s PPC plan.

8. Social Media Metrics

The volume of social media mentions and interaction related to your business reveals the extent to which a marketing campaign can be called a successful one. It is not just limited to increasing the number of followers, instead, it is also, about audience engaging and interacting with the campaign. For example, higher the number of tweets, likes, shares, subscribers, followers, hashtags and mentions, the more profitable will be your marketing strategy. Social media metrics can be obtained from social media analytics tools that are easily available over the web.


ROI plays a decisive role in showing how a company’s social media marketing efforts roll out. Different advertising channels have different goals which are dependent on a company’s objectives and its intended clients. With this variation, the time required tin obtaining considerable ROI can also vary for different social media marketing campaigns. It could be weeks or months before you realize that your social media advertising strategy is retaliating with positive results. So, work on your social media marketing strategy and optimize it from time to time to ensure it drives profitable returns to your business endeavors.

Thomas Burn is a content marketing expert. Being a social media enthusiast, he believes in the power of writing.