Social Media and Social Media ROI



SocialMedia and Social Media ROI



MeasuringSocial Media Return on Investments (ROI) presents one of the hardestchallenges for a business. This is because it is difficult to tellhow much revenue a tweet or a Facebookstatutes sent end like a monthago earns you. Many companies today do admit that they have no ideaat all if their social media input is paying off. However, measuringsocial media ROI is important as it can help companies improve theirefforts or amend their social media goals (Aral,Dellarocas &ampGodes, 2013).

Eventhough measuring ROI presents a lot of challenges, it is not thatimpossible. One of the methods many companies chose to measure theirROI is Metric tools. Facebook allows maximum use of pageadministrators as possible. Using the conversion measurement concept,companies can record the behaviors of those who click on theiradvertisements they have presented in those pages. Now when acustomer clicks on their advert and proceeds to register, then thecompany are sure that the advert has left an impression on thecustomer.

Companiesalso need to be real when capturing and measuring the ROI impact ofsocial media. To effectively achieve this, they first of all need tocapture their social media conversion goals. Different companiesalways have different conversation goals, but one needs to ensurethat there are some monetary values generated. After this, companiesneed to ensure that they do tracking of their set conversion goals(Kumar &ampMirchandani, 2013).Each and every conversion that companies come up with must assigngiven monetary values. This can be done promptly by using historicaldata and also the art of guesstimating. Companies also must be in agood position to measure their total benefits with regards to thedifferent channels available. All costs used in social media mustalso be captured and determined. After all that is done, results areanalyzed and later on space is created to improve the given results.

Inthis case companies, ROI is measured by the percentage of the netbenefits over the costs (calculated as Benefits- costs/ costs* 100).Companies also measure their ROI by analyzing the traffic created.This does not measure ROI, but it allows for analysis of your websiteclicks on adverts or at given time PPC campaigns which tell you howmuch your company is growing.


Aral,S., Dellarocas, C., &ampGodes, D. (2013). Introduction to theSpecial Issue —Social Media and Business Transformation: AFramework for Research. InformationSystems Research,24(1),3-13.

Kumar,V., &ampMirchandani, R. (2013). Increasing the ROI of social mediamarketing. IEEEEngineering Management Review,41(3),17-23.

Socialmedia ROI: managing and measuring social media efforts in yourorganization. (2011). ChoiceReviews Online,49(01),49-0378-49-0378.


Oneof the innovative ways of using social media is the use of Reddit soas to capture customers’ feedbacks and leads. While this might notappeal to many companies as the idea of being rated as unpleasant andall unwanted adjectives might be scary, it can be the best innovativemethod that companies can adopt. The Reddit platform allows millionsof customers to say what is in their mind by using the sub Redditschannel. It is within this sub Reddits that we find such phrase such“no am not interested” or “Good stuff, but maybe later.”Imagine a scenario where one of the sub Reddits content is exactlyone of the target markets of a given company(Aaron &amp Aaron, 2014).Imagine the impact your company will benefit from as a result ofinteracting with the community. The answer to this is that thecompany stands a high chance of benefit the most from the use ofReddits(Richards, 2015).

Assumea situation where a company wants to improve a given product designand ends up getting over 10,000 votes and 3000 comments. In such kindof a situation, the company will be in a position to understand whatmany of their customers want and thus act accordingly. This indeedprovides the company with proof of concept knowing exactly where youstand and things can even get better when your target customers areshouting yes to your designs and programs. It is very evident thatthe company stands to benefit in all aspects. If your potentialcustomers are for your idea, then you give them exactly what theywant, if they are of the opinion that it need some changes, then thecompany will be given a chance to improve on their program.


Aaron,J., &amp Aaron, J. (2014). Howto Use Reddit to Generate Leads.SocialMedia Examiner.Retrieved 23 October 2015, from&lt

Olson,R., &amp Neal, Z. (2015). Navigating the massive world of reddit:using backbone networks to map user interests in social media. PeerjComputer Science,1,e4. Retrieved 23 October 2015, &lt

Richards,R. (2015). Howto Use Reddit to Get on the First Page of Google.InboundMarketing Agency | Strategy and Innovation.Retrieved 23 October 2015, from&lt