Home / Articles  / Social Media ROI – Measuring Results vs. Activity
Home / Articles  / Social Media ROI – Measuring Results vs. Activity
Ami Grant

Ami Grant is a director of Paid Search for The Search Agency's Baltimore office, where she has worked since 2004.

  • Pingback:Social Media ROI – Measuring Results vs. Activity | The Search Agents « sociaalmedianieuws
  • Avatar

    The biggest problem with social media ROI is that it’s the WRONG question. Unless what you’re doing has a direct financial return you simply can’t measure ROI, you’re missing part of the equation.
    Instead you have to measure impact metrics. Mentions, likes, growth, links, earned media, etc. and then you can map those against profits and see if there is a correlation (but you can’t prove causation).

    Now, if you do a social media campaign where the end goal is “sell more blue widgets” you can easily ascertain the ROI of that by filling out the equation (Gain-Cost)/Cost. And there you have it. The ROI of a social media campaign. It’s really quite simple.

    Asking “What’s the ROI of social media” is a totally useless question and makes absolutely no sense. Social media is a collection of online tools used for different purposes and ROI isn’t an appropriate metric for all of those purposes. Just like ROI isn’t the appropriate metric for a host of other marketing, PR, customer service, internal communication, or HR activities.

    April 3, 2012 at 7:05 am Reply
Post a Comment

Find out how we can grow your business