Social Media ROI

There are hundreds of different ways to measure social media ROI which depend on the goal of the business. According to my research from online websites, I summarized the theses ways for business to measure ROI for different goals as followings.

 1. Brand Awareness:

When the goal of a business is to strengthen its brand, the marketers trend to measure the social media ROI by tracking brand awareness. Generally, brand awareness can be tracked by measuring the attention  and  sentiment ( Ghali, 2011).


Attention= Reach * Engagement.

Reach  means how many people you can potentially interact with when using social media. It can be calculated as

Brand reach= Facebook fans + Twitter followers

Content reach=brand reach + (Shares* Reach of each sharer )

Engagement  comprises both content engagement and brand engagement.

Brand engagement=Likes +Twitter+ Comments+ Mentions

Content engagement= (Shares+Replies)/ Total pieces of social content.

Or Content engagement= Clicks / Content reach”

 ( Ghali, 2011).


Sentiment is about what is being said about your business on social networks. Since negative attention is not a goal of a business, measuring positive versus neutral versus negative comments is helpful( Ghali, 2011).

Positive sentiment= Numbers of positive brand comments / Total number of mentions

2. Metrics:

Generally, social media metrics can be broken down into 3 categories which are quantitative metrics and qualitative metrics and ROI metrics (Turner, 2010).

Quantitative Metrics  are the metrics that are data-intensive and number-oriented which might include unique visits, page views, followers, demographics, frequency, bounce rate, length of visit or just about any other metric (Turner,2010) .

Qualitative Metrics  are the metrics that have an emotional component such as “cheap”, “bad”or “great” which has an impact on your business. (Turner,2010) .

ROI Metrics

Businesses are able to measure the success of their social media campaigns on an ROI basis.One example of ROI metrics is Conversion Measurement. In the article “ How To Measure Your Social Media Return On Investment”, Natalie Burg provides an example written by Todd Wasserman that  “if a customer clicks and then goes on your site to register, then you have proof that the ad was at least effective for that” (Burg, 2013). So facebook tool is a good conversion for the ROI measurement.

3.  Connect Loyalty Programs, CRM and Social Media

Besides ROI metrics, another simple way to measure social media ROI is to connect Loyalty Programs, CRM and Social Media. It means that businesses have to create incentives for people to indicate their social media presence and connect to their brand and then set up a full-blown CRM system that includes social media interactions, purchase information and other key information about your customers ( Kallas, 2012).In this way business are able to see how people who have indicated their social media connection behave differently from other groups ,making social media marketing ROI a real dollar value for business ( Kallas, 2012).


Burg, N. (2013). How To Measure Your Social Media Return On Investment. Retrieved from Forbes:

Ghali, P. (2011). Calculating your social media marketing return on investment: A how-to guide for social media marketers. Retrieved August 11, 2013, from

Kallas, P. (2012, May 4). 5 Ways to Measure Social Media ROI. Dream Grow, 1, 1-4.

Turner, J. (2010, Nov) HOW TO: Calculate the ROI of Your Social Media Campaign. Retrieved November 7, 2010 from:



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