True Cost of Social Media ROI

When considering social media marketing for your business, there are two factors you should know: Cost and ROI (Return On Investment). I’ve heard some business owners comment, "Since Facebook and LinkedIn are free, why should there be a cost?" However, they don’t consider the effort and time it takes to write good content and the posting of it all to different platforms. Others may say that social media is only an option in marketing and not measurable. Of course, with any investment you put into your business, there is risk. Understanding Social Media ROI really depends on your company and its overall goals.

What are your goals?

It’s important to include a marketing plan and goals for any advertising or marketing strategy you create. Is your overall goal to increase followers? Are you looking to sell more product? Increase traffic to your website? To determine social media ROI, it gets down how much you’re currently spending and how much your social media impact matters to your business - this is where you have to make some decisions for your company. Some companies may spend their money on more traditional forms of advertising, such as print or TV. It could be difficult for them to switch from traditional marketing to social media. However, social media ad spending may actually get more results in the long run, in fact, it has recently surpassed TV ad spending.

Tracking ROI

Before you start measuring your social media activities, here is a recommended list to follow:

  • Record website analytics – visitors, referral links, SEO rankings, etc.