There have been arguments made that social media is like a business card, you can’t measure the ROI of a business card, it just creates possible opportunities. While I think there is some validity to this statement, it does seem that many marketers have been able to find a way to measure their Social Media ROI. Sense there have been so many great posts on the matter, I’m not going to reinvent the wheel. Below is a round up of several blog posts and articles I found online that I believe give the best answer to the question “What is the Best Way to Measure ROI of Social Media Marketing?”
“Social media ROI is a mystery to most marketers, and the pros who are measuring it all have their own theories and practices. But there isn’t a one-stop tool that solves the problem of how to understand and calculate social media ROI.” This post explores how then, are marketers supposed to measure campaign success and gives 3 things to take into consideration.
Brian Solis from Altimeter group wrote a great forward addressing this issue for his friend, Olivier Blanchard’s book, Social Media ROI. He highlights the importance of having your end goal in mind before you can begin to measure anything.He also makes a great point of how most platforms and social media efforts don’t cost anything, however, hiring an employee or taking the time to do it can have a number associated to it. Remember… Time is money.
“Social media return on investment (ROI) is simply a measurement of efficiency. It’s a lot of things to a lot of people: “return on inactivity,” “return on innovation” and “return on engagement.”However, in a stricter sense, social media ROI is defined as a measure of the efficiency of a social media marketing campaign. This definition might sound complicated, but in reality, it’s quite simple.” Take a peek at the simple method of calculating ROI.
Gain some insight from a former financial analyst at P&G in this great post that gives us some creative Ways to Measure (or at Least Validate) Your Social Media Efforts.
How do you measure your Social Media ROI? Share your tips with us in the comments below!