Measuring social media ROI (return on investment) is a very important part of any social media marketing strategy. Your return on investment allows you to understand the efficacy of your social media efforts, show value to an organization and refine your strategy over time to improve your returns as you learn. Your ROI is arguably one of the most important elements of social media marketing. Using a paid media agency can ensure your social media ROI remains consistently high.
So, what is ROI? ROI in terms of social media is the return on investment from your social media activities and expenses. Essentially, it’s the profit you make from your social media efforts.
To calculate your ROI, you use the following formula:
(Value achieved – investment made) / investment made X 100 = social media ROI
If your ROI is above 0, then you are making profit from your social media efforts. If your ROI is negative, then you will be losing money as your investment is higher than your returns.
Measuring your social media ROI matters because it’s critical to building and refining your social marketing strategy. It shows what’s working and what’s not, allowing you to adjust resources and tactics to be more effective.
Paid media has a big influence on ROI—and typically for the better. While it is an investment in itself, supercharging content with paid media can increase your reach, engagement, conversions and traffic to specific landing pages.
Paid media is incredibly effective when they work, but incredibly costly if they aren’t handled and strategized correctly. This is why using a paid media agency full of social experts is a wise decision. Paid media agencies have access to data science, digital marketing wizards and proprietary AI to discover established and emerging cultural insights to supercharge paid social media for clients.
Paid media agencies help brands reach communities in all corners of the physical and digital worlds—on any platform—with powerful messages that deserve to be heard by those who care. Paid media agencies can help your message be heard, whether you want to start conversations, or grow your audience.
As a result of vast experience, paid media agencies understand what people want to consume online, and how they want to consume it. They understand that as consumer moods change, so does social media. Paid media agencies can ensure you get the most from your paid media campaigns by using real-time cultural insights into trends and behaviours.
With this deep understanding of cultural nuances and meticulous planning, paid media agencies can guarantee that your paid content will thrive on social media and outperform traditional paid media strategies. Your content will be seen by those who care about your message, and are enthusiastic to engage with you. This means your investment into paid media will be met, and surpassed.
Paid media agencies will be partners to major social platforms (including Facebook, TikTok, YouTube, WeChat etc), and hence have complete access to their advertising platforms. This helps them create high converting campaigns based on real=time data, driving sales, views, downloads and traffic. They can create dynamic infeed paid media solutions, shown directly to the audiences you want to reach.
Paid media agencies can support your influencer marketing campaign with paid media to guarantee the best possible results for you and your brand across the social platforms you want to activate. By taking the most engaging influencer content, supercharging it with paid media, they can deliver authentic campaigns directly to your target audience. Paid media agencies can take good performing content and make it great.