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Social media return on investment(ROI) is a measurement of the value from socialmedia marketing. Essentially, what is the return for theinvestments made in social media?

Social media return on investment(ROI) is a measurement of the value from socialmedia marketing. Essentially, what is the return for theinvestments made in social media?

  • ROI by revenue formula: profit/total investment x 100.

Calculate the ROI of social media campaign for a pair ofRay Ban sunglasses:

  • You are a social media marketer responsible for creating asocial media campaign for a pair of Ray Ban sunglasses.
  • The goal of your social campaign is to drive sales for thesunglasses.
  • With every single social post, you include a trackablecall-to-action link to your website where users could purchase thesunglasses.
  • You outsourced all of the professional photographs of thesunglasses, creation of the social media graphics and videos to acompany for $5,000.
  • You also spent $3,000 on social media ads directed at thetarget market.
  • Your campaign ran for one month, and during that time you onlyworked on the campaign, making a salary of $5,000.
  • The social media management tool that your company pays forcosts $1,000 a month.
  • By the end of the campaign, you were able to pull a report fromyour company website of all the sunglasses sold from customers whoclicked on the trackable link from social media.
  • The total revenue for sunglasses purchases from the socialmedia campaign was $50,000, of which $30,000 was profit aftersubtracting the costs to make the sunglasses.

Instructions

  • Calculate the ROI of your social media campaign using thecalculation from Chapter 18 section 2.
  • Formula: profit/total investment X 100.

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