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How do you calculate the ROI of your social media content?

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How do you calculate the ROI of your social media content? If you are a social media marketer, you know that creating and sharing engaging content is not enough. You also need to measure and report the impact of your content on your business goals and budget. In this article, you will learn how to define, track, and analyze the key metrics that show the value of your social media content.

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1 Define your goals and objectives

Before you can measure the ROI of your social media content, you need to define what you want to achieve with it. What are your specific and measurable goals and objectives? For example, do you want to increase brand awareness, generate leads, drive sales, or improve customer loyalty? Depending on your goals, you will need to align them with the appropriate social media platforms, content types, and strategies.

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James Creech

Co-Founder @ Measure Studio ?? AI-Powered Social Media Insights
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Start by outlining your goals and how you measure success. Don't get caught up in vanity metrics like followers or engagements. Always aim to tie your social marketing campaigns back to measurable business objectives like free trial signups, app installs, or product sales.

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2 Track your content performance

Once you have defined your goals and objectives, you need to track how your content performs on each social media platform. You can use analytics dashboards, spreadsheets, or reports to collect and organize the data. Common metrics to track include reach (how many people saw your content?), engagement (how many people liked, commented, shared, or clicked on your content?), conversion (how many people took the desired action after seeing your content?), and cost (how much did you spend on creating and distributing your content?).

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3 Analyze your content ROI

After you have tracked your content performance, you need to analyze how it relates to your goals and objectives. You can use different formulas and methods to calculate the ROI of your social media content, depending on your business model and industry. However, a simple and general formula is:

ROI = (Revenue - Cost) / Cost x 100%

This formula shows the percentage of profit or loss that you made from your content investment. For example, if you spent $1000 on creating and distributing your content, and generated $2000 in revenue, your ROI would be:

ROI = ($2000 - $1000) / $1000 x 100% = 100%

This means that you made a 100% profit from your content investment.

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Patrick Ward

Seasoned Marketing Leader for Technology and Financial Services | AdTech | FinTech | Advertising | Digital Marketing | ex-Media.Monks and Wedbush Securities | Clients: Google, Nike, Walmart, Sony, Allianz, Oracle
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Don't be too restrictive in calculating ROI per post - social media is a cumulative game and usually a prospect is compelled to reach out about your product or service based on multiple posts. A great way to measure that ROI over time is adding a 'How did you hear about us' field in your contact form where prospects can identify that social media was the first-touch interaction with your brand. From there, you can extrapolate the pipeline and associated revenue derived from your social media efforts.

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4 Benchmark your content ROI

To understand the significance of your content ROI, you need to benchmark it against your own historical data, your industry standards, or your competitors. This will help you identify your strengths, weaknesses, opportunities, and threats, and adjust your content strategy accordingly. For example, you can compare your content ROI across different social media platforms, content types, or time periods, and see what works best for your goals and objectives.

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Hiral Shah

Global Head of Social Media at Thoughtworks
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When benchmarking your data, try and keep all parameters the same. For e.g., compare metrics for the same time period whether that's 3 months, 6 months or 12 months) or the number of content pieces shared in the time period. There will be fluctuations in volume or format of the content being shared that can't be controlled. To overcome this, businesses can keep a rolling benchmark over a set period of time, usually annually.

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5 Report your content ROI

Finally, you need to report your content ROI to your stakeholders, such as your boss, your team, or your clients. You should create a clear and concise report that summarizes your goals and objectives, your content performance, your content ROI, and your key insights and recommendations. You can use various formats and tools to present your report, such as slides, charts, or dashboards. The main purpose of your report is to show the value of your social media content and how it contributes to your business success.

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How do you calculate the ROI of your social media content?

1

2

3

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5

1 Define your goals and objectives

2 Track your content performance

3 Analyze your content ROI

4 Benchmark your content ROI

5 Report your content ROI

Social Media

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How do you calculate the ROI of your social media content?

1

2

3

4

5

1 Define your goals and objectives

2 Track your content performance

3 Analyze your content ROI

4 Benchmark your content ROI

5 Report your content ROI

Social Media

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