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How To Measure Social Media ROI: Tools & Recommendations

Measuring social media’s return on investment may seem impossible to some. It is more complex than the traditional return on investment calculation that entrepreneurs have been using for years. However, knowing what to look for and using the right social media management tools will help companies in determining how much the platform has helped the business’ revenue.


Online Tools for Measuring Social Media Traffic and Return on Investment

These online programs show reports on the traffic and feedback that social media accounts get from their audience. The tools also provide companies with a baseline in determining their social media return on investment. In addition, users are able to identify their technique’s effectiveness and how it affects the company’s revenue.

Google Analytics

Google Analytics is the leading tool in monitoring web traffic and social media management. It provides users with reports and graphs on daily visits and traffic based on locations and viewer types. Google understands that companies want to know how much their social media accounts have affected their business. This is why Google Analytics provides entrepreneurs with detailed reports and metrics.

Google Analytics Features

o Multi Channel Identification

Users will not be able to identify their post’s effectiveness or return on investment through analyzing simple clicks or views. This is why Google Analytics provides users with reports on channels opened after visitors have viewed their post. The information helps companies in identifying if the post has positively influenced their visitors and if it has directed them to the desired channel or site.

o Custom Analysis and Reports

This social media tool lets companies determine their traffic and feedback from visitors. It also allows users to set custom reports and analysis on certain posts or topics. Google Analytics gives users reports that are ready for presentation and evaluation.

o Traffic Analytics

Google Analytics also allows users to test and improve their accounts by determining the effective tactics from posts that do not bring more traffic. It also gives visitors the advantage of browsing faster through site search reporting. In addition, the online tool lets users monitor their visitors to find out how they navigate and what information they usually look for.

o Ad Posting

AdSense is another feature from Google Analytics that lets users post advertisements on websites or blogs. The tool evaluates the ad and location where it will be placed in order to determine what is most suitable. With AdSense, companies are able to advertise their business to their target audience effectively.


Omniture is an online marketing and web analytics tool. The program provides companies and individual users with a range of services and features. This tool is used by a number of large companies all over the world.

Omniture Products and Features

o SiteCatalyst

SiteCatalyst is a program from Omniture. This allows users to view web analytics in order to identify traffic and social media effectiveness. SiteCatalyst provides a client-side form of analytics.

o SearchCenter

Omniture’s SearchCenter provides companies with content network optimization. The software also helps users with paid searches from visitors. It covers online tools such as Facebook Ads, Microsoft Ad Center, Yahoo Search Marketing and Google AdWords.

o Data Warehouse

Data Warehouse is a tool that is used along with SiteCatalyst. The online program allows users to store and archive important data. The information can then be used for reporting and analysis.

o Discover

Discover is an online tool that provides users with real time insight and web traffic. The tool allows companies to determine new visitors and find out about trends. It lets them improve their social media accounts through reports and analytics.

o Insight

Insight is another online tool from Omniture that provides users with detailed reports and analytics. The software allows them to collect data from multiple preset sources. Insight also lets people extract information for auditing and validation.

o Genesis

Genesis is a third party tool that features online reports on campaigns and posts. The program allows users to manage and listen to the conversations on a number of social media sources. It provides them with detailed reports on web traffic and visitor feedback.

o Vista

Vista is another online tool that is used along with SiteCatalyst. The program lets users add visitors through careful filtering. It identifies them through information such as their location, age and interests. Vista then uses the data given in directing visitors to respective channels.

Steps in Measuring Social Media Return on Investment

After determining the important data from the online tools, entrepreneurs can measure their social media return on investment. This process does not provide an exact figure. However, the results taken from measuring and calculating the return on investment is suitable for ad campaigns and in determining effectiveness.

Identify How Much is Spent on the Social Media Account

Entrepreneurs should first identify the amount that is spent on their social media accounts. This includes expenses on online and desktop applications. The costs from purchasing devices used for the platform should also be included. Lastly, entrepreneurs should include their expenses and the amount of time invested or the revenue lost from assigning an employee to manage the account.

Consumer Lifetime Value

The consumer lifetime value is determined when a follower or audience member shares the brand or company with their social media group. This increases when the traffic or analytics show the number of times a post from the company is shared online. The values given will also help entrepreneurs in making good decisions with their social media strategies.

Determine New Visitors

Different online tools such as Google Analytics allow users to monitor new visitors to the social media account. These online programs also let users view conversations in order to determine if their strategies are effective. New visitors or followers also mean effective techniques.

Impression Value

Another piece of data is the social media account’s impression value. This includes shares and active conversations about the product or company on Facebook, Twitter or other social media accounts. Views on Youtube, online traffic, Google Analytics and other online sources should also be included in the impression value.

The information provided should then be used to identify an estimate of a company’s social media return on investment. The number of new customers from the social media account should be added to its consumer value. The figure should then be added to the account’s impression value. The information is finally calculated against the time and money spent on the social media account.

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