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 help 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, lets 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 data range of your report to the last one 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 and 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.

Let us 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%

Other articles related to ROI:

 

Do you know the difference between Web Analytics and Google Analytics?


99.99% of course creators themselves don’t know the difference between Web analytics, Google Analytics (GA) and Google Tag Manager (GTM).

So they are teaching GA and GTM in the name of teaching Web analytics.

They just copy each other. Monkey see, monkey do.

But Web analytics is not about GA, GTM.

It is about analyzing and interpreting data, setting up goals, strategies and KPIs.

It’s about creating strategic roadmap for your business.


Web Analytics is the core skill. Google Analytics is just a tool used to implement ‘Web Analytics’.

You can also implement ‘Web analytics’ via other tools like ‘adobe analytics’, ‘kissmetrics’ etc.

Using Google Analytics without the good understanding of ‘Web analytics’ is like driving around in a car, in a big city without understanding the traffic rules and road signs.

You are either likely to end up somewhere other than your destination or you get involved in an accident.


You learn data analysis and interpretation from Web analytics and not from Google Analytics.

The direction in which your analysis will move, will determine the direction in which your marketing campaigns and eventually your company will move to get the highest possible return on investment.

You get that direction from ‘Web analytics’ and not from ‘Google Analytics’.


You learn to set up KPIs, strategies and measurement framework for your business from ‘Web analytics’ and not from ‘Google Analytics’.

So if you are taking a course only on 'Google Analytics’, you are learning to use one of the tools of ‘Web analytics’. You are not learning the ‘Web analytics’ itself.

Since any person can learn to use Google Analytics in couple of weeks, you do no get any competitive advantage in the marketplace just by knowing GA.

You need to know lot more than GA in order to work in Web analytics and marketing field.


So what I have done, if you are interested, is I have put together a completely free training that will teach you exactly how I have been able to leverage web/digital analytics to generate floods of news sales and customers and how you can literally copy what I have done to get similar results.

Here what You'll Learn On This FREE Web Class!


1) Why digital analytics is the key to online business success

2) The number 1 reason why most marketers are not able to scale their advertising and maximize sales.

3) Why Google and Facebook ads don’t work for most businesses & how to make them work.

4) Why you won’t get any competitive advantage in the marketplace just by knowing Google Analytics.


5) The number 1 reason why conversion optimization is not working for your business.

6) How to advertise on any marketing platform for FREE with an unlimited budget.

7) How to learn and master digital analytics and conversion optimization in record time.

 
 

My best selling books on Digital Analytics and Conversion Optimization

Maths and Stats for Web Analytics and Conversion Optimization
This expert guide will teach you how to leverage the knowledge of maths and statistics in order to accurately interpret data and take actions, which can quickly improve the bottom-line of your online business.

Master the Essentials of Email Marketing Analytics
This book focuses solely on the ‘analytics’ that power your email marketing optimization program and will help you dramatically reduce your cost per acquisition and increase marketing ROI by tracking the performance of the various KPIs and metrics used for email marketing.

Attribution Modelling in Google Analytics and Beyond
Attribution modelling is the process of determining the most effective marketing channels for investment. This book has been written to help you implement attribution modelling. It will teach you how to leverage the knowledge of attribution modelling in order to allocate marketing budget and understand buying behaviour.

Attribution Modelling in Google Ads and Facebook
This book has been written to help you implement attribution modelling in Google Ads (Google AdWords) and Facebook. It will teach you, how to leverage the knowledge of attribution modelling in order to understand the customer purchasing journey and determine the most effective marketing channels for investment.

Himanshu Sharma

Digital Marketing Consultant and Founder of Optimizesmart.com

Himanshu helps business owners and marketing professionals in generating more sales and ROI by fixing their website tracking issues, helping them understand their true customers' purchase journey and helping them determine the most effective marketing channels for investment.

He has over 12 years of experience in digital analytics and digital marketing.

He was nominated for the Digital Analytics Association's Awards for Excellence. The Digital Analytics Association is a world-renowned not-for-profit association that helps organisations overcome the challenges of data acquisition and application.

He is the author of four best-selling books on analytics and conversion optimization:

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