Once an outlet that no one took seriously, social media has quickly evolved into the most common way to connect with, and interact with friends, families, and businesses. Phrases such as “Find me on Facebook” and “Instagram that” have become a part of our day-to-day, as people are increasingly checking in on social media to view what is going on in their network or to share photos, updates, and events in real time! In the United States alone, almost 73% of Americans have at least one social media account, according to Forbes.com. As a business, it makes complete sense to take advantage of social media as an avenue to drive traffic and gain exposure, using your local audience and their connections as your vessel.
There is one area of social media that many business owners question: What is the return on investment (ROI)? The answer is as simple as it is complex - create a social media strategy that allows you to work in unison with your marketing goals, while having fun, of course.
What is Social Media ROI?
In a nutshell, social media ROI is what your business is getting back from the time, money, and resources that you’re putting into your social media marketing campaign.
Why measure Social Media ROI?
Social media platforms have become a competitive place for businesses to share and promote information with their audience. As if that weren’t challenging enough, algorithms, or rules, have been created to decrease the visibility of business-page posts and how they appear on your fans’ timelines. It is recommended to include an advertising budget on social media to increase your overall exposure, engagement and sales – the best part; it packs a powerful, inexpensive punch! As a business owner or manager, it is wise to selectively choose which items are advertised and ensure that they align with your marketing goals. Tracking what you’re doing, what’s being spent, and the results you’re getting is extremely important in determining the role that social media is playing in your marketing strategy.
Measure your social media ROI to determine:
- Where you can improve your efforts
- Which social media channels are driving the most results for you
- How different approaches can affect your social media goals
Increase your Social Media ROI.
Take a look at your upcoming business efforts. Are you hosting an event, launching a new product, trying to build a lunch crowd, or opening a new location? If so, considering a social media advertising budget and tying it in with a creative campaign will ensure that your message is received by individuals already connected with you, in addition to targeting local social media users that have interests that align with your business. Connecting your social advertising with a call-to-action is a great way to track success. Whether you’re linking to an invite, a contact form, or requiring your audience to share your post on their personal network – you’ll be able to easily see the outcome of your campaign. Social media tools such as Sprout Social or Hootsuite also provide in-depth analytics that allow you to see how many people have followed the links and calls to action that you have created in your business strategy.
The Recap.
Social media is a powerful and inexpensive way to get your message out to local consumers interested in what you have to say. By tying your social media messages in with your marketing efforts and including a social media advertising budget, you’re sure to see a return on investment. The key is to spend your money where it makes sense, don’t oversell, be relevant and study the results to measure success or determine areas for improvement.