Before we dive into the technicalities, it’s crucial to understand the significance of social media ROI.

In simple terms, social media ROI measures the value generated from the overall investment in social media by quantifying the return on investment from your social media efforts and costs. It reflects the money invested in a campaign compared to the business’s resulting gains from that campaign.

It is common to measure ROI in terms of monetary value; however, there are instances where the impact on revenue is difficult to measure instantly and must be quantified using non-monetary metrics.

Before starting a social media campaign, it is vital to define the desired outcomes clearly. While the primary goal is usually to increase revenue, it’s important to acknowledge that ROI also encompasses measuring all activities that add value to the company, enhance engagement, and drive traffic to the website or database.

Measuring social media ROI is not just a theoretical exercise. It’s a practical tool that allows for real-time marketing strategy optimisation. By assessing campaign performance, you can identify what’s working and what’s not, making it easier to adjust resources, tactics, and budgets.

Now, it is time to talk about how to maximise ROI with 3 Key Social Media Metrics:

Metric 1 – Click Through Rate (CTR)
A low CTR is a negative indication that your content does not add value to your audience. The user is not finding the content helpful and relevant. It also means that your campaign is not targeting the right audience.
A good CTR will help your ad reach more people faster. However, remember that a good CTR is relative to what you’re promoting, the format, and the social networks.

Metric 2 – Cost per 1,000 Impressions (CPM)
CPM is one of the most important metrics you should monitor.
It’s essential because businesses can easily compare the effectiveness of a campaign and different channels, such as the CPM difference between Facebook and LinkedIn or Google Search vs. Facebook Ads.
The CPM can also compare the effectiveness of an audience or piece of content.
Note that the CPM varies depending on many factors, including location, device, the performance of your organic content, and how often the audience engages with your page.

Metric 3 – 3-second Video Views
The 3-second Video Views measure the number of people who watch your video for 3 seconds or more. That’s the time needed to collect a social media ID and store it in your remarketing database. This metric is valuable because a highly viewed video also has a broader reach, which means more people can view the video, giving you greater reach to people outside of your circle.
It will help your campaign build new databases, create custom audiences, and instantly attract more people to your social media channels.

Article by: Melanie Coint-Bavarot – Partnerships Team Leader – Attention Experts