The document outlines a five-step process to calculate ROI on social media, starting with defining clear objectives and tracking relevant metrics aligned with those goals. It emphasizes the importance of assessing social media costs and provides a formula for calculating ROI, along with tips for creating a comprehensive ROI report. Key factors include setting specific social media goals, measuring performance, and incorporating findings into future strategies.

1. How to
Calculate
ROI on
Social
Media in 5
Steps

2. Define Clear Social &
Business Objectives
First, set your social media goal and
stick to that purpose only for a
specific time period. It will help you
to calculate the value of your social
media investments and increase the
social media ROI. What can be your
goal in social media?
 Boost sign-ups, generate leads
 Improve brand recognition
 Increase sales and boost
newsletter subscribers etc.

3. Track Metrics that Align With
Your Objectives
Getting insights by tacking the
performance of social media metrics
will give you better ROIs and plan
your investment in a better way.
Here are some of the core matrices
to consider for enhancement of
social media ROI:
 Reach
 Site visits
 Form submission
 Lead generation

4. Calculate Your Social Media
Costs
It is imperative to measure the cost
side of social media marketing
efforts. It will project the profit
picture of social media and allow
you to calculate the returns of each
expense. The most relevant costs of
social media marketing are:
 Subscription cost of tools.
 Cost to create content.
 Ad campaign cost
 The cost of hiring agencies.

5. Calculate Your ROI
Once you get the cost amount and
total value of the input, start
calculating the Social media ROI of
your organization. It showcases the
ultimate picture of where all your
efforts have gone and also gives
insight into the planning of future
strategies.
Pro tip
 Social media ROI formula=
Earnings- cost/cost*100
 Positive ROI means profit
 Negative ROI means a loss

6. Create an ROI Report that
Shows the Impact of Social
Once you get the details on social
media ROI, take the next step
towards report creation. Here are
some pro tips for creating reports on
social media:
 Use the right template Furnish
the report in a simple language
 Incorporate all assumptions and
track short-term progress with
KPIs
 Showcase the business objective
and social results.

7. THANK YOU
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