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The following article was published in our article directory on April 29, 2017.
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Social Media Advertising and ROI

Article Category: Marketing

Author Name: Jason Magill

Making Sense of Social Media Advertising and Your ROI

Why is it important to make sense of social media advertising and your ROI? Because you should be measuring your ROI with any type of advertising channel you use. If you don't, you have no idea if it's worth spending money on. For me, it's imperative to be able to show clients the value of their social media campaigns and efforts. Measured favorable results can be quite convincing.

Before we get to measuring ROI and the best platforms for advertising, let's talk about what you may already do. Managing your social media platforms with engaging posts is great to build awareness and engagement. It's also great because it's free.

Sort of.

Even if you 're not using ad spend for social, your time is worth money. So, if you wanted to measure your ROI with social media management without ad spend, you could put a dollar amount to your time. Determine the return based on the amount of time you put into social media management. Looking at the number of clicks, likes, shares etc., will give you a rough idea of your ROI.

If your time is worth $40/hr and you spent 6 hours last week managing your different social media platforms, you essentially invested $240 into social media. If your efforts brought in 500 new likes across all platforms, you basically brought in 2 new likes for every dollar spent (500/240=2.08).

Is that worth it?

The good news is that you typically get better results from running ads on social.

The bad news is, there is a learning curve to getting your audience targeted precisely.

Where do we begin? Why, at the beginning of course!

The first thing to consider is which platform or platforms you'll want to use. 2 mistakes businesses make with social media management are:

they try to have a presence on too many social platforms, platforms their customers aren't using or,
they have virtually no social media presence because they don't value social media as part of their sales funnel

You need to have a social media presence and it needs to be the right presence. If you're target audience isn't using Facebook, then don't spend too much time curating your business' Facebook page. Think of a younger market using Instagram and Snapchat for social. Notice I didn't say, "Don't have a Facebook business page". This is because social signals can help you rank within search engines and Facebook is still a behemoth that can't be ignored.social media platform icons

You want to put your ad spend into the channel that's going to perform best for the goals of your business. If you have products and professional shots of those products, and you really want to target females between the ages of 25-45, maybe you want to consider Pinterest. If your target audience is much older, you may want to consider newspaper ads.

The biggest takeaways are:

Know your audience. Know how and where they consume media.
Spend your time and money on social media wisely

Keep in mind that the numbers used are not typical. We are simply throwing numbers around to get an idea of what measuring social media management advertising and your ROI should look like.

Depending on a few variables, seeing results from social media can take time. Don't expect to throw some money at a Facebook ad and see massive results immediately. Take your time to do research before creating the ad. Make sure you've defined your target audience and there's a clear call to action (CTA). You also want to make sure you have a way to measure the results you get. Do you have analytics, like Google Analytics, on your website? Are you looking at the analytics offered by the social media channel?

The questions and information aren't meant to scare you but inform you. You should know there's this and more that goes into having a successful social media campaign and, the only way to know if you're spending your time and money wisely is by measuring your social media management advertising ROI.

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