How to measure your Social media ROI (free calculator)

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Siddharth Dwivedi May 29, 2024

As digital marketing has positively taken the world by storm, businesses have increasingly turned to social media to reach their target audiences. And while social media can be an excellent tool for building brand awareness and engagement, measuring its return on investment (ROI) can be challenging.

That’s where social media ROI comes in. Social media ROI is a way of measuring the value that your social media activity is generating for your business. It considers factors like leads generated, website traffic, and engagement levels and assigns a monetary value to each.

What does Social Media ROI mean?

Social media ROI or social media marketing ROI is a measure of the effectiveness of social media marketing efforts in generating revenue or achieving specific business goals. It is a way to evaluate the success of social media campaigns in terms of their impact on the bottom line.

Calculating the social media ROI can help businesses understand the value of their social media efforts and optimize their social media marketing strategies for maximum impact. It can also help businesses justify their social media budgets and investments to stakeholders and executives.

Why does social media ROI matter?

Because it allows you to see whether or not your social media efforts are paying off. If you’re not generating any leads or driving any website traffic from your social media activity, then it’s probably not worth your time and resources. But if you see results in increased leads and web traffic, then you know that your returns from your social media campaigns are positive, and you should continue investing in it.

How To Measure Social Media ROI For Your Business?

To know how to measure social media ROI for your business, you must first set some goals and objectives. What are you looking to achieve with your social media campaigns? Once you know what you want to accomplish, you can start thinking about how to calculate social media ROI for your social media marketing campaign.

It is no secret that social media has become a powerful marketing tool for businesses of all sizes. With the ability to reach a large audience quickly and easily, social media provides an excellent way to promote your products or services.

The most basic social media ROI formula appears as follows:

Profit / Investment x 100 = social media ROI %

Profit: The money you have earned from your social media marketing efforts

Investment: The total cost of your social media marketing

Here are some important factors which will help you in measuring or tracking ROI on social media- 

Identifying your goals and objectives

What are you hoping to achieve through social media? Are you looking to increase brand awareness, generate leads, or drive sales? Once you have a clear idea of what you want to accomplish, you can develop a strategy for measuring your ROI.

Knowing the metrics

There are several ways to track ROI on social media, but some of the most common include tracking website traffic, engagement levels, and conversion rates. By monitoring these metrics, you can better understand how well your social media campaign is performing and make necessary adjustments along the way.

Cost analysis

Calculate the total cost of your social media campaign, including expenses such as advertising spend, content creation, and staff time. This will help you calculate the ROI accurately.

Attribution modeling

Attribution modeling helps you determine which social media marketers made the specific touchpoints in the customer journey that led to conversions. By understanding which social media channels and campaigns are driving the most conversions, you can optimize your social media marketing ROI strategy.

Continuous monitoring and optimization

Monitor your social media campaigns regularly and make adjustments based on the data. Continuously optimize your campaigns to improve social media ROI over time.

With so many businesses utilizing social media, it is more important than ever to make sure that your campaigns are effective. By taking the time to measure your ROI, you can ensure that your social media efforts are paying off and adjust your strategy and social media goals accordingly.

Here are the 4 ways to increase social media ROI

Identify and target the right audience

Understanding your target audience is key to achieving higher ROI on social media marketing –
You need to identify the demographics, interests, and behaviours of your ideal customers and tailor your messaging and content to resonate with them. Use social media tools such as social media ROI calculator, customer surveys, and buyer personas to gain insights into your target audience and optimize your targeting.

Use engaging content formats

The type of content you create and share on social media can have a big impact on ROI. Use a mix of engaging content formats such as videos, infographics, images, and interactive content to capture the attention of your audience and drive engagement. Experiment with different formats and track their performance to identify what works best for your audience.

Implement retargeting campaigns

Retargeting campaigns can be an effective way to increase social media ROI by targeting users who have previously interacted with your brand but didn’t convert. Retargeting ads can be used to remind users about products they viewed or added to their cart, offer them incentives such as discounts or free shipping, or provide them with additional information that might encourage them to make a purchase. By targeting users who are already familiar with your brand and have shown an interest in your products, retargeting campaigns can drive higher conversion rates and ROI.

Test and optimize your campaigns

A/B testing and continuous optimization can help you improve the performance and ROI of your social media campaigns. Test different variables such as ad copy, and targeting to see what resonates with your audience and drives the highest ROI. Use data and analytics to make informed decisions about where to allocate your budget and which campaigns to scale up on your social media platforms.

A Free Social Media ROI Tool To Help You Measure ROI

There are several different tools you can use to measure the ROI of your social media campaigns. One popular tool is Vaizle’s Social Media ROI Calculator, which allows you to track your campaign performance and analyze your results for free. As a result, you can make informed decisions about where to allocate your resources and plan your marketing strategy.

Here is a quick guide on how to measure social media ROI using the tool and receive instant results.

  1. Firstly, decide whether you are planning on making direct sales or generating leads. Then, select the required option on the Calculator to measure ROI. Pick the traffic your social media profiles generate that redirects to your website. 

2.  Next, you need to set the conversion rate of your business website or the landing page, which is generally the positive leads or those who have made purchases from your website. Set the “Average Transaction Size For Your Business”, which is the total revenue you expect from your customers. 

3.  Finally, set the cost incurred by you to set up your social media costs for a team of social media managers or for hiring someone to manage your social media presence. It will include the charges for tools and content creation.

Once done, you receive a comprehensive report on the same page that helps your results allowing you to know where you stand with the investment made in the past and whether you are reaping benefits.


Measuring social media ROI is essential to any business’s digital marketing strategy. With the right social media metrics used, data, and analysis, you can gain clear insights into what’s working and where improvement should be made. Remember to align your objectives with the key social media performance indicators that best measure success. By tracking social media ROI regularly, you will better understand campaign results and overall performance – allowing you to optimize campaigns for better results in the future strategically!

About the Author

Siddharth Dwivedi

Siddharth Dwivedi

Siddharth built two bootstrapped companies from the ground up: Vaizle and XOR Labs. He’s personally managed over Rs 100cr in ad budget across eCommerce, D2C, ed-tech, and health-tech segments. Apart from being a full-time marketer, he loves taking on the challenges of finance and operations. When not staring at his laptop, you’ll find him reading books or playing football on weekends.

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