TIPS TO IMPROVE SOCIAL MEDIA ROI IN 2023 AND BEYONDingenious
Today entrepreneurs are spending more on social media marketing, why? The reason is simple. They are looking at it as the potential for engagements and growth in their sales. As per studies, social media spending can touch around $ 63 billion next year, and social budgets can double.
Experts suggest if marketers allocate even 15 % of their total budget to social media, they can see double the returns on their investment.
This brief write-up highlights tips to leverage social media to increase ROI beyond 2023 and get a bang for your buck.
Main issue with calculating social media ROI is determining the returns on investment. It is tricky when non-ecommerce businesses are involved. However, the issue is that not all marketing campaigns are developed or planned around generating sales, the main objective of investment in social media is the following:
- Increasing brand awareness
- Building engagements
- Creating leads
- Building customers relationships, satisfaction and retention
Through these aspects, it is easy to calculate the business success, but it is tough to assign the monetary value to the same.
Before you start wondering about measuring it, best is to improve social media ROI and find the relevant metrics. You can use metrics to gauge whether what you do or work on social media will pay off?
Find the statistics
One of the easy ways to measure social media marketing is to find the statistics surrounding your reach. As it might show the same thing, it is imperative to understand the difference:
These are the number of people who have seen your content.
It displays how often content is shown to the particular person, but sometimes it’s multiple times.
By paying attention to both metrics, you can give a push to your social media ROI. The more your reach, the more will be your brand awareness. However, impressions are also crucial, as they measure your audience’s interest in the content you distribute.
Keep a watch on the Audience Growth Rate
The audience’s growth rate is also a sign that your social media marketing efforts is bearing fruit. More is the number, the better, but remember that as more followers, the lesser is your growth rate. Compare the audience growth rate with that of competitors, as it assures that your following increases at a competitor’s pace and your social media strategy also benefits your business.
Look at the Engagement Rate
Yet another social media metric is your engagement rate. It help communicates how your audience is engaging with the content you are posting. Your engagement rate is a sign of whether your strategy is working or not. Many social media experts agrees that the good engagement rates fall in the range of 1 % to 5 %. As more followers you have, more difficult it is to achieve success. In 2022, Hootsuite’s social media team reported an average Instagram engagement rate of 4.59 % 2022 with more than 177k followers.
Depending on the vertical of the business, some brands easily communicate with their audience than others. For simplification, particular industry audiences can have more or less engagement rates on social media depending on the business. To find the potentiality of each industry benchmark on Twitter, Instagram, TikTok and Facebook, look at the average engagement rates per post.
With these numbers in mind, it will help you determine whether the audience invests in the content you post or if you need to work on adding more insights into your strategy.
Click-Through Rate (CTR)
If you are using social media as a content distribution and traffic generation platform, the apt way to measure success is to measure click-through rates. A high CTR rate shows that your content is working fine and is grabbing attention. It is also proof that the content is optimized to built interest and to display that you are aware of their products and services.
Calculate your conversion rate
If you want to promote your business and push it to the next level through social media, the best metric to calculate is to see through the conversion rates. Traffic from different social media channels has more chance of leading a sale, with an impressive 7.6 % conversion rate.
In such a situation, the most important metrics you require for calculation will be the cost per click and cost per thousand impressions.
Sometimes calculating as basic as tracking the money you spend on social media marketing and comparing it to your revenue reveals the success strategy and will also give you an easy way to measure ROI.
Analyze your budget and continue with it
As per the survey conducted by Gartner, businesses allocate an average of 9.5 % of their total revenue to marketing. Out of the same, they spend around 11.3 % on social media. Putting aside a fixed amount of money to spend on the marketing channel will not drive results, to utilize the maximum social media marketing budget, you can manage your spending.
Measuring ROI on all social media investments
- Making your approach to social media marketing flexible, scalable and highly adaptable.
- Review your spending each quarter.
Concentrate on channels you feel are result-driven and result oriented.
Think beyond the flow of wind. As per the 2022 marketing report, the most popular social media channels include:
Remember that if you are a B2B brand trying to reach potential clients, Instagram is not the best place. Keep trying new channels, experimenting with new formats, and finding yourself how you fare. Who knows, you might end up with a new distribution platform that will help you present your products or services to thousands of new customers.
Understand buyer’s personality
Explaining your personas is one of the steps to creating a business plan. However, if you are running after social media marketing ROI, do not go back to basics, even for a moment. For the social media content to touch the audience’s emotional cord, you should know to whom you want to reach, engage and convert. Something as easy as a reminder of who your audience is will ascertain that the effort you intend to put in to produce social media content can result in leads.
A well-worked target audience can also help you find new opportunities for increasing your reach.
Work on short-form videos.
Study shows that people are picky about the type of content that they intend to see and read. The main aspect of success is knowing what content type appeals to the audience. Moreover, the short form of video greatly appeals to customers and importantly:
- Lend to different social media channels.
- Present your audience with valuable content.
- Use the same to show your clients how authentically and ly you understand their points.
- Creating short-term videos means you are telling your audience you value their time and create content they will enjoy without forcing them to waste precious minutes.
TikTok content has proved that you cannot bring entertainment, education and success of your brand to the audiences with only a long blog and short videos speak a lot.
Short form of content has proved that you cannot bring entertainment, education and success of your brand to the audiences with only a long blog and short videos speak a lot.
However, it is also a fact that there is no one size fit for all. As ROI from social media varies depending on your business and its goals. You can do certain things to measure the ROI from social media. It will help you understand and make sense of how your content will lure your audiences.
Rely on Engage Coder, one of the major digital marketing agencies to achieve higher ROI. It is all about crafting the digital marketing that converts. We start with creating the plan, offering automation marketing solutions with the ideas that bring life to your proposition.
If you are also jumping into this Digital wagon, Engage Coder is a way we think beyond the wave.