Social media can be a very high-ROI channel for many businesses — but remember, it’s not all about hard numbers. While social media can help you generate leads, gain followers, and garner website traffic, it’s also about brand awareness and cultural impact.
Tracking key social media metrics such as likes, followers, and page views is essential because it helps you understand whether your messaging is hitting the mark or not, allowing you to quickly pivot your strategy. This is crucial for SMBs, as it shows whether it’s better to keep things organic or invest in paid social media.
Here’s an example of calculating paid social media MROI:
A fashion magazine is trying to attract more subscribers, so it starts offering a free trial. All of its social media posts promoting the trial include a tracking URL.
The magazine pays to boost its posts on social media for a week. In that time, it receives many new visitors, a percentage of whom sign up for the free trial. After the trial, a smaller percentage become paid subscribers.
The final number of paid subscribers would show the fashion magazine whether it was worth paying to promote its posts on social media. By going back and tracking where those subscribers came from, it would also show which social media channels led to the most valuable new leads.