As social media continues to grow as the primary leading factor of digital marketing, the allocation of the budget has become more critical on how to develop a strong social media strategy while also demonstrating the return on investment. For companies across the world, they are expanding their investments in social media, turning social into a significant revenue driver. Because of this, there is now a large amount of pressure building to prove the use of budgeting more efficiently and that they can effectively report on their social media return on investment (ROI). But how do we calculate ROI: profit/investment x 100= ROI (%). As every day passes, the social media marketing world becomes more and more competitive. As companies are now trying to battle for audiences’ attention, they now need to pour more resources as well as budgets into their campaigns to stand out from the crowd. Having the ability to analyze your social media revenue can empower your request for larger budgets by having the ability to show that your investments are beneficial to your company. ROI can also allow you to expose potential inefficiencies of your social media strategy that could be improved upon. These two factors show how the measure of ROI is vital for growth in marketing and business. But it goes even deeper than this! Measuring your social media ROI allows you to determine how much value you are delivering to your audience. If you are resulting in a high number of users converting, this shows that your message is compelling and correctly targeted, proving the value that quality content has in social media revenue. Overall the biggest takeaway is that looking into your ROI can provide you with invaluable insights on how to fine-tune your social media strategy that can put you ahead of your competition.
By: Brandon Diaz