How to Calculate ROI for Social Media

Defining Social ROI

Return on Investment (ROI) measures the efficiency of your social media marketing. It answers the question: "What are we getting back for the time and money we put in?"

The Formula

Basic ROI = (Value derived from social media - Cost of social media marketing) / Cost of social media marketing * 100.

Attribution Models

Tracking the "value" can be tricky. Use UTM parameters and conversion tracking pixels to attribute website sales or leads directly to your social posts. SocialBuddy's advanced analytics can help visualize this journey.

Beyond Monetary ROI

Not all value is immediate revenue. Brand awareness, customer loyalty, and sentiment are valuable long-term assets that should also be considered in your overall evaluation.