The ROI of Social Media

Is your website at the center of your internet marketing strategy? It should be! You don’t own any of the social platforms you are part of, you do own your website / blog.

ROI has 2 meanings:

  1. Return on Investment
  2. Return on Influence

ROI Formula:

Content Creation X (*Social Media + SEO + PPC + Email) = traffic to your website/blog

(*Social Media has multiple purposes, building relationships, customer service and much more)

When you create content you have something to talk about. When you have something to talk about you have a reason to drive traffic to your website / blog. Make sure you are adding value and that you have a compelling call to action when people arrive.

More traffic = more opportunity for you to measure

The next part of the formula is to track your conversion on your website. I use google analytics to track visitors. 5 buyers / 100 visitors = 5% conversion.

In a Nutshell: Add value – Drive traffic to your website, have a CTA and track conversion.


  1. says

    Thanks for your Social Media ROI roadmap. Makes it easy to understand the fundementals of developing the best RIO for your marketing dollar.

  2. says

    The new Google Analytics is really impressive. The interface allows you to calculate social media ROI based on whether social was the main referrer or simply had some contact with the conversion. Overall, it is a step forward for social media marketing and the industry.

  3. says

    explaining the ROI to our clients of social media is sometimes a challenge because they think ROI is always only monetary which for social media it can be more than just making money. It can be influence and brand loyalty. Good simple infographic.

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