Three Methods to measure Social Media ROI

Back when the social media is just starting to enter our lives, it is difficult or impossible for companies to measure the social media return on investment. It would take them a lot of effort and research to be able to calculate the numbers and data. But with the fast pace of technological changes, this has become a possible task that helps small businesses, companies, and corporations to track and meet the needs of their customers.  Social media ROI is their return that the company is getting back from efforts, money, time, resources that they put in. Below are three of some of the ways that can help companies measure social media ROI.

Analytics Tool

The technological changes in the online community have brought analytics tool that help tracks the company’s social media goals. An example of this is the Google Analytics. Entrepreneur Magazine mentioned, “Google Analytics offers four types of goals you can measure, and the one that’s best for you will depend on your specific business model” (Kumar, 2012). These are the URL destination, time on site, page per visit, and events. URL destination is when “your goal is reached whenever a visitor lands on your designated target page” (Kumar, 2012). Time on site allows you to measure how much visitors spend on the website. Page per visit is to get visitors on your website. Last, events allow measuring a more complex indicator of visits on the site. Google analytics can help track information that provides insights and maximizes profits for the company.


Tracking your Social Media Cost and Benefit


In order for your company to measure the ROI of the investment on social media, you have to list how much you’re spending to market the company’s brand. In the book Groundswell by Li and Bernoff (2011), advice that you should have a spreadsheet that includes how much it cost to get the result of your investment. For example, having 2500 daily page views will cost $2.50 per thousand which have a $7k value of the benefit. This method is “helpful in gaining buy-in from other functions throughout the company and in disciplining your thinking” (Li and Bernoff, 2011, p.112). Having your goals and putting a number to it helps you to know which platform to invest more or less.

Relative ROI Measurement

Another method to measure the social media return on investment is the relative ROI. This method works the best for those companies that have multiple marketing efforts in different types of media. Relative ROI is about “comparing the impact and cost-effectiveness of your social media efforts against the measurable impact of other marketing channels, such as TV, print, display, earned via PR, and so on” (Briody, 2010). Comparing social media efforts and its benefits with other media allows you to examine what works best for certain kind of strategy and what media that your customers respond actively. The method allows you to track the activities that give the most value to the company.



Briody, K. (2010). Social Media ROI Revisited: 4 Ways to Measure. Ignite Social Media. Retrieved from

Kumar, A. (2012, February 27). Three Secrets to Using Google Analytics for Measuring Your Website’s ROI. Entrepreneur. Retrieved from

Li, C. & Bernoff, J. (2011). Groundswell: Winning in a World Transformed by Social Technologies. Harvard Business School Press.




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