The “Big Question”: Social Media Marketing ROI

The “Big Question”: Social Media Marketing ROI

The Big Question Social Media Marketing ROI

There’s no one-size-fits-all answer for proving return on investment with your Facebook social media marketing. While goal conversions and sales are often the route taken to prove return on any marketing investment, it’s important to understand in social media that it’s about more. Social capital’s worth is multifaceted. From reputation and brand recognition, to increased levels of trust and customer satisfaction, social media can provide your business with benefits that aren’t easily quantifiable. That being said, there are still a few methods you can utilize to help you decide whether or not your investment in Facebook marketing is worth the investment spent in time and money.


Monitoring and measuring your sales before and after a particular social media marketing campaign can give some indication of levels of return, as well as cross domain tracking via Google Analytics to show goal conversions (when Google Analytics and Facebook were working in tandem), polling, and Facebook Insights for applications which would enable fans to purchase directly on Facebook just to name a few.

It must be explained that not all factors will be taken into consideration with these methods. If your company suffers from seasonal ebbs and flows it can affect ROI calculations, in addition to unforeseen technical difficulties, reputation management issues, market changes, the list goes on and on. It’s important to remember that the figures you obtain from tracking increases in sales will not be absolute, but analyzed over time can show patterns that allude to successes or failures.


Generating leads on Facebook Pages can be done directly, through implementation of customized applications and the analysis of data recorded through Facebook Insights and Google Analytics. Again, many factors should be taken into consideration including the effectiveness of calls to action which can affect results, and technical difficulties just to name a few.

Generating offsite leads can be tracked through Google Analytics with proper cross domain tracking, and goals and goal conversion funnels properly set up.


Mass media costs are often outside the financial budgets for many small businesses. With Facebook marketing businesses can reach a large audience at affordable prices. When comparing the cost of mass media and the cost to address a large audience on Facebook, the results can show that Facebook marketing can reduce financial costs while keeping similar effectiveness. The advantages that Facebook offers are metrics to track conversions that often television, print and radio cannot provide.

Product Development

A lot of time, money and effort can go into developing and testing new products. Using your Facebook Page as the venue for development and testing can often reduce these costs, and provide a savings that translates into return on the investment.

Customer Retention

Often, social media users utilize their personal profiles to praise or complain about a particular brand. It’s hard to quantify the effect of these praises and complaints, but one way to measure your effectiveness in social media is to track brand mentions and sentiment. With tools like you can take a baseline measurement of your sentiment and mentions before and after your Facebook marketing campaign.

Still not convinced? Find out how 77 companies used social media to successfully market their products, services, and brands in ways that were cost effective and worthwhile.

This is an excerpt from Kaila Strong’s book, “Facebook For Business: A How-To Guide” available in the Vertical Measures Store now for only $9.99.

How do you measure social capital’s worth?

Kaila Strong

As Senior Director of SEO Services, Kaila oversees both the SEO department and our Internet Marketing Strategists. She works with our expert team to uncover SEO strategies, develop link building campaigns, conduct competitive analysis, review Google penalties, execute backlink analysis and train peers on SEO fundamentals. +Kaila Strong