Chat with us, powered by LiveChat

Social Media Advertising: How to Achieve Maximum ROI

23 Aug 2023

When it comes down to digital marketing, returns on investment (ROI) is the biggest factor. That's because it helps determine whether the campaign they are investing time and effort will deliver the desired results or not. Honestly, it's easy to determine the ROI on email marketing, sales, and promotional codes, but calculating the ROI of social media advertisements will be challenging.

So, if you want to expand your brand's reach by leveraging social media advertising, we are sharing how you can optimize your campaigns for maximum ROI.

Understanding ROI in Social Media Advertising

The ROI is basically the return on investment that your brand can expect in return on the money and time you dedicate to social media marketing and advertising campaigns. That's because it can be challenging to determine what kind of returns you need. As a brand, you need to understand that social media might play a significant role in digital marketing, but its primary purpose isn't marketing.

Primarily, social media is about letting people connect with their family and friends. The advertising campaigns are only a part of the platform, but it's not the core. So, you've to understand that social media advertising will be a whisper in the room rather than the primary focus. As a result, the conventional marketing strategies and calculations will not work here.

Calculating ROI from Social Media

To begin with, you've to calculate the costs of social media marketing, including the software license, content creation costs, and promotional expenses. Once you know the costs, you have to minus them from the total sales, which shows how much profit you have earned. This number will be the return on investment.

However, some brands don't launch advertising campaigns only for sales. For this reason, you have to understand the goals that you want to achieve, ranging from increased website traffic to higher brand awareness. In addition, some brands want to increase the number of sales and engagement. So, if you want to gain more brand awareness, you have to monitor the impressions, follower counts, reshares, and mentions.

Ways to Increase Social Media ROI

In case you want to increase the ROI of your social media advertising, we are sharing an array of tips that can help!

1. Add Sharing

A big mistake that many people in charge of social media make is that they don't make it clear that they want their information to be shared. Instead, they spend their whole campaign talking about their own goods or services and don't take into account what the followers have to say. Social is the keyword in social media marketing.

This kind of marketing works because it is social and lets people talk to each other. To get more out of social media, you should encourage your audience to connect with you and share your content. The more people who see your work, the more likely it is that you will find real fans who will support it and interact with it.

2. Focus on Video Content

Video material scares a lot of people, and it's easy to see why! If you aren't used to being on camera, it can be hard to feel at ease. But the truth is that video material is taking over social media, and if you don't join this new trend, you're hurting your social media's return on investment (ROI). Short movies like those on TikTok or Instagram Reels are very popular with followers.

Even the programs that run social media sites like it. Video content is often pushed over other types of material because people find it interesting, fun, and informative.

3. Buy Planning Tools

Investing in a social media organizing tool will not only save you time by letting you post your content in batches but also help you get a better return on investment (ROI) from social media. Tools like Hootsuite, Buffer, and Later will post your content when you tell them to, and they will also tell you when your audience is most likely to interact with it.

You might have been writing at 8 AM every Monday, but your audience might be online at 7 AM on Fridays. The data from these timing tools will tell you these details, so you can change when you post to match when your audience scrolls through social media.

4. Invest In Ads

Some posts need paid ads, but not all of them. If you see that one of your posts is getting a lot of attention, you can pay a little to "boost" it. This will put your ad on the timelines and feeds of other people who are similar to your target audience. This will introduce you to a new audience and, hopefully, new leads. Whether you're trying to get more people to read your information or figure out how to get more people to buy, the more people who see it, the better.

5. Use Your Old Content Again

With how fast social media moves and how many accounts there are on the internet, it's unlikely that your audience will remember each and every post you make. So even if you remember every post you've ever made, the people who read them don't. For this reason, using old information can help you. If one of your posts did really well, mark it so that it can be used again in a few weeks.

6. Measure the Results

Almost all businesses use social media these days, but most aren't making a good return on investment (ROI). ROI for social media is so low because brands don't measure how well they do on social media. According to the latest State of Social Media Marketing report, almost 20% of the brands surveyed said they had never talked about social ROI.

After all, if you don't measure something, you can't make it better. You should explain why you are using social media. Is it for company awareness, thought leadership, getting leads, keeping leads, or keeping customers? How do you want to use social media to reach your goals? Do you want to get a certain number of people to visit your site? Do you want to keep in touch with your leads? Once you know the answers to these questions, you can use analytics to figure out how well you're doing.

7. Determine Your Target Audience

According to reports, about 2.8 billion people use social media at least once a month.  In addition, it shows that around 91% of these people use smartphones to use social media platforms. In fact, around 34% of them are regular smartphone and social media users. So, when you know what kind of devices your audience uses, you will be able to understand their thought process.