Digital Marketing, Social Media Marketing

How to Calculate Return on Investment from Social Media Marketing?

ROI or Return on Investment isn’t unknown to the business world. Every business owner pays close attention to the returns on money invested in the business operations.

Here we will discuss investment in online business promotion – i.e. digital marketing, especially on social media platforms.

ROI from social media marketing depends on what your business objectives are such as brand identity, business leads, revenue, customer satisfaction, etc, but generally, social media marketing ROI is the sum of all social media actions that add value to your brand.

For example, if you are measuring ROI by revenue, here’s a simple formula to calculate

Profit / total investment (man-hours, ad budget) X 100 = social media ROI (as a percentage)

To secure your budgets for your social media marketing strategies you need to show how your efforts are going to impact in achieving business goals. Measuring investments in your social media marketing efforts lets you dedicate more time and resources into what is working and correct that isn’t.

Given below are objectives, metrics, tools, and tips to calculate ROI from social media marketing.


  • Business conversions (customer acquisition or lead generation)
  • Brand awareness or perception
  • Customer experience
  • Security and risk mitigation


  • Reach
  • Audience engagement
  • Site traffic
  • Leads generated
  • Sign-ups and conversions
  • Revenue generated


  • Google Analytics is a web analytics service offered by Google that tracks and reports website traffic.
  • HootSuite is a tool that helps you keep track and manage your social media channels.
  • Hootsuite Insights is a real-time social analytics platform.
  • Facebook Pixel is a code which can be placed on your website. It helps analyze actions taken by visitors on your website.
  • UTM parameters also known as UTM tags are customizable pieces of text that allow analytics software to track campaign traffic

Using these tools will assist you in identifying what is working for your business and what isn’t. Calculating ROI from social media marketing provides a valuable insight into the success of campaigns of today and future.