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Frequently Asked Questions
Social media ROI is the revenue or value generated from social media efforts compared to investment (time, money, resources). Formula: (Revenue from Social - Social Media Investment) / Social Media Investment × 100.
Track revenue attributed to social (using UTM codes or conversion pixels). Subtract total social investment (tools, salaries, ads). Divide by investment. For example: $50,000 revenue - $5,000 cost = $45,000 / $5,000 = 900% ROI.
ROI varies by industry. E-commerce targets 300-500% ROI. B2B services often see 200-400%. Startups might see 100-200% initially. Compare to your industry and competitors to set realistic benchmarks.
Use UTM parameters in links (utm_source=instagram). Use conversion pixels to track actions. Enable goal tracking in Google Analytics. Compare customer acquisition cost (CAC) from social vs other channels.
Yes, but it's harder to measure. Brand awareness contributes to long-term ROI. Track impressions, reach, brand mentions, and branded search volume. Brand ROI compounds over time.
Count: social media tools ($), paid ads, employee salaries (% spent on social), content creation costs, and third-party services. Some companies exclude brand awareness content from ROI calculations.
Focus on high-converting platforms first, optimize posting schedule for engagement, create content that converts (not just engagement), track and test continuously, and allocate budget to top performers.
Yes. If you spend $10,000 on social and only generate $5,000 in revenue, you have -50% ROI. This signals you need to adjust strategy, change platforms, or optimize messaging and targeting.