How To Calculate The ROI Of Your Social Media Campaigns

Following is the formula to calculate the ROI of your social media campaigns:

Social media ROI = (Total economic value generated through social media campaigns – Total cost of running social media campaigns)/ Total cost of running social media campaigns * 100

Here,

Total economic value generated through social media campaigns = Total revenue generated through social media campaigns + Assisted conversion value of social media campaigns 

Social media not only helps in completing a conversion but also helps in initiating and assisting the conversions which are completed by other marketing channels (like organic, PPC, email, display, direct, referral, etc).

Total cost of running social media campaigns = (Total number of hours spent on social media * Salary per hour) + Total ad spend on different social media channels.

For example, let’s calculate the total economic value generated through Facebook campaigns (both paid and organic).

Step-1: Navigate to Acquisition > All Traffic > Source / Medium report in your GA view and then apply ‘Facebook’ filter:

Step-2: Change the date range of your report to the last month.

Step-3: Note down the reported sales:

Step-4: Navigate to Conversions > Multi-Channel Funnels > Assisted Conversions report in your GA view:

Step-5: Click on the ‘Source’ tab, apply the ‘Facebook’ filter, then note down the assisted conversion value:

Step-6: Calculate the total economic value generated by Facebook campaigns:

Total economic value generated through Facebook campaigns

= Total revenue generated through Facebook campaigns + Assisted conversion value of Facebook campaigns

= $5505.38 + $3993.96

= $9,499.34

Step-7: Calculate the total cost of running Facebook campaigns.

Suppose that the total number of hours spent on social media by your employee in the last one month = 20 hours.

His salary per hour is $50

Your total Facebook ad spend (as reported by Facebook Ads Manager) is = $1500

So now the total cost of running Facebook campaigns

= Total number of hours spent on Facebook * Salary per hour) + Total ad spend on Facebook

= (20 hrs * $50/hr) + $1500

= $1000 + $1500

= $2500

Step-8: Calculate the ROI of your Facebook marketing campaigns

Facebook ROI = (Total economic value generated through social media campaigns – Total cost of running social media campaigns)/ Total cost of running social media campaigns * 100

= ($9,499.34 – $2500) / $2500 * 100

= 280%

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