Skip to main content
Services
TAYA

They Ask, You Answer Mastery

A coaching & training program that drives unmatched sales & marketing results.

Sales

Sales Performance Mastery

Improve the competencies and close rates of your sales organization.

Web design

Website Mastery

Web design, development & training for your team.

HubSpot

HubSpot Mastery

Everything you need to get the most from HubSpot.

AI Mastery

AI Enablement Mastery

Unlock the power of AI in all aspects of your revenue operations.

Discover how IMPACT’s services can help take your business to the next level. Book a free 30-minute coaching session Book a free 30-minute coaching session
Learning Center
Learning Center

Learning Center

Free resources to help you improve the way you market, sell and grow your business.

[NEW] The Endless Customers Podcast is now available everywhere. Learn how to earn trust & win more customers in the age of AI. Listen Now Listen Now

Free Assessment: How does your sales & marketing measure up?

Close

Free Assessment:

How does your sales & marketing measure up?
Take this free, 5-minute assessment and learn what you can start doing today to boost traffic, leads, and sales.
Sapir Segal

By Sapir Segal

Oct 17, 2016

Topics:

Social Media Marketing Marketing Strategy Contributor
Subscribe
Join 40,000+ sales and marketing pros who receive our weekly newsletter.

Get the most relevant, actionable digital sales and marketing insights you need to make smarter decisions faster... all in under five minutes.

Thanks, stay tuned for our upcoming edition.
Social Media Marketing  |   Marketing Strategy  |   Contributor

How to Measure Social Media ROI in B2B Marketing

Sapir Segal

By Sapir Segal

Oct 17, 2016

How to Measure Social Media ROI in B2B Marketing

One obstacle that B2B marketers often stumble across is measuring the ROI of social media.

If you’re a marketer who believes in the potential of social media marketing, and invest your time and resources into developing social media campaigns, you must have a way to understand the value of your efforts and the only way to do that is through ROI.

Showing measurable results ensures that your work on social media is perceived in a more professional light by high-up managers, clients, or investors.  

Besides your personal reputation and success at stake here, there’s a few more reasons to measure your social media ROI including, and not limited to:

Just as you would attribute leads to other digital marketing mediums like paid ads and specific landing pages, the same you should be achieved for social media.

What is Social Media ROI

Before things get technical, let’s first break down the meaning of social media ROI and understand why it’s so important. When we say “ROI” we refer to ‘return on investment’, in everyday terms, that means, understanding what you’ve “gained” from the efforts you’ve put into social media marketing.

The basic formula for measuring ROI is given as:

ROI = (Gain / Total Cost) 100

When measuring social media ROI you follow the exact same formula - but the variables you plug in will change.

Social Media ROI = (Social Media Gain / Social Media Cost)(100)

The math here is pretty straight forward, but the question is what are these variables comprised of?

  • Social Media Cost - this is how much you’ve invested into your social media marketing - everything from creating, to developing, and promoting your content. Here’s a list to highlight some general social media expenses:
      • HR costs
        • Salaries
        • Training
      • Materials/Equipment
      • Social media marketing platforms and tools
      • Agencies & consultants
      • Business overhead (e.g. accounting fees, insurance, legal fees)

You can create your own list of expenses and decide what’s important for you to include in the calculation. Once you have all the costs ready, just add them up, and plug the total value into the formula.

  • Social Media Gain - this is how much you’ve earned from your social media marketing efforts.

“Gain” can be subjective as it varies according to your marketing and organizational objectives.

In B2B marketing “gain” usually refers to the number of leads you bring in; However, like most marketers, you’re probably having trouble accurately attributing leads to social media.

As a recent Adobe study suggests, this issue boils down to one major factor: last-touch attribution.

Most marketers measure the success of their social media efforts according to the most recent channel/post that led a user to convert. The problem with doing this is that it doesn’t accurately capture the impact of social media on users’ buying decisions.

In contrast, Adobe highlights that gathering social media analytics through first-touch attribution is 94% more valid.

Most prospects first discover information about your company through social media posts and then choose to take further actions like reading your blog and downloading your webinars.

Again, it was that first post that got them hooked, not the last.

How to Measure Social Media ROI

When calculating social media ROI in B2B marketing, you need to understand how much each lead is worth from different types of content that you distribute on your social networks, and be able to assign a monetary value to it.

A lead generated through a webinar may be more valuable than a lead that came from a blog subscription. If you’re just starting off your marketing strategy and don’t have the real numbers yet, an alternative option would be to examine industry benchmarks.  

One type of content that is becoming increasingly popular among B2B marketers is webinars, with 62% now using webinars as part of their content strategy. In this regard, we shall break down how much a webinar is worth as a lead and enter the numbers into the formula shown above.

According to ReadyTalk the average cost of creating and hosting a monthly webinar is $11,000 a year. That’s $915 for a single webinar, with social media accounting for about $500. Assume that 50 users converted into a lead through a webinar, and each lead is worth $500 for the company:

  • Social Media Cost of Webinar: $500
  • Gain: 50 X $500 = $25,000
  • ROI = ($25,000 / $500) X 100 =

The total social media ROI for hosting a monthly webinar is therefore $5000.

Unfortunately for us marketers, leads usually don’t convert on the first interaction with your brand.  

As mentioned earlier, leads typically go through a journey of interactions and engagements before converting.

They might read a blog post or two, download a ungated whitepaper, and finally convert by signing up for a webinar. That’s because B2B buyers use your content channels to gather as much information about your organization, its product or service, before deciding to contact you.

In fact, Forrester’s research found that for each piece of content created by your company, a B2B customer checks 3 pieces of content about your organization.

By calculating your social media ROI, you can understand the true success of your social content within campaigns, and how they’re impacting your lead generation.

Understanding Your Goals  

Before determining your social media measurements, you need to define your social media marketing goals.

These goals should be set and agreed on among your marketing and executive teams. They should be aligned with (and complement) your existing business and marketing objectives.

In addition, your goals should follow the S.M.A.R.T model - specific, measurable, attainable, relevant, and timely.

Each goal should be given a numerical value and a deadline, such as “50 conversions by the end of the second quarter.” Once everyone is clear on the specific social media goals, you’re able to decide your KPIs.

Deciding Your Social Media KPIs

Since your success as a B2B marketer gets measured on the number of leads you bring in, you need to track the right social media KPIs.

Vanity metrics such as “likes”, “shares”, and “retweets” aside, you need to focus on a metric that has real value -- and that is conversions. It’s up to your company and marketing executives to define the actions that make up a conversion.

It could be a blog subscription, whitepaper download, or even a webinar signup. Measuring conversions will answer the question of how social media is affecting the bottom line of your company’s goals.

Prove Your Social ROI

While it’s important to establish your goals and act on them, your job as a B2B marketer is only done once you’ve met your overall marketing objectives.

Tracking the conversions of social media users into leads, and potentially into customers, will substantially impact your future marketing strategies, and prove to the CEO and company that social media is worthwhile.

Unfortunately though, many companies don’t focus on proving social media ROI.

According to The CMO Survey 2014, only 15% of marketers are able to do so, because they either lack the budget or the right toolset to analyze their social media activities and be able to tie them to lead generation.

By implementing a comprehensive social media management platform, like Oktopost for example, you’ll be able to understand your user’s journey and dissect every single interaction that led him/her to finally reach the conversion point.

Increase the Value of Your Social Media ROI

Tracking your social media ROI to prove your efforts are of great worth is one thing but the next challenge should be to gradually increase it.

Remember the goals that you set earlier? These should be constantly reviewed and tied back to your social media ROI.

If your campaigns are hitting a bumpy road or aren’t proving to be as successful as you imagined, it might be time to freshen-up your content strategy and brainstorm some engaging methods of targeting your buyer persona. The quicker you identify what’s holding you back, the better.

Using your social media analytics tools you can gain a profound insight into how well each piece of content and message is resonating with your audience and impacting your sales funnel. This way you can make educated decisions when changing your tactics.

Evaluating your social media ROI should not be a one-time process. The point is to always evolve your strategy, taking into account the data you’re tracking in order to drive results for your business.

Free Assessment:

How does your sales & marketing measure up?
Take this free, 5-minute assessment and learn what you can start doing today to boost traffic, leads, and sales.

Related Articles

7 Best Social Media Management Tools

February 26, 2024
Connor DeLaney Connor DeLaney

Social Media Strategy: How to Know Where Your Customers Are

January 15, 2024
Lindsey Schmidt Lindsey Schmidt

Winning with YouTube Shorts: Mastering the Algorithm on the Front Lines

October 23, 2023
Marcus Sheridan Marcus Sheridan

Why Short-Form Video Is a Vital Tool for Reaching Your Audience

September 25, 2023
Lindsey Schmidt Lindsey Schmidt

Your B2B Content Strategy Is Going to Need More Social

June 21, 2023
Nick Bennett Nick Bennett

12 Ways You're Totally Blowing Your Business Social Media Strategy

June 18, 2023
Mary Brown Mary Brown

Should Your Demand Gen Strategy Change in a Slumping Economy?

April 12, 2023
Nick Bennett Nick Bennett

How To Build an Effective Instagram Video Marketing Strategy

April 30, 2022
Ramona Sukhraj Ramona Sukhraj

How Facebook's news feed algorithm works and prioritizes content

July 14, 2021
Liz Murphy Liz Murphy

Data: Facebook is No. 1 in revenue value for publishers, Twitter is a bust

July 7, 2021
Liz Murphy Liz Murphy

Best times to post on social media (new data)

May 19, 2021
Liz Murphy Liz Murphy

Twitter fails to buy Clubhouse, whose creators can now make money... so what?

April 8, 2021
Liz Murphy Liz Murphy

Marketers, Facebook Analytics will be no more on June 30, 2021

April 2, 2021
Liz Murphy Liz Murphy

Twitter teases Super Follows, Communities; undo send tweet still a rumor

March 11, 2021
Liz Murphy Liz Murphy

LinkedIn adds new 'Products' highlight tab on company pages

February 25, 2021
Melissa Smith Melissa Smith

54 jaw-dropping social media statistics for businesses [New for 2021]

February 23, 2021
Connor DeLaney Connor DeLaney

Facebook video best practices: what you need to know to grow your video presence

February 16, 2021
Lindsey Schmidt Lindsey Schmidt

27 best digital marketing news sites

January 26, 2021
Liz Murphy Liz Murphy

Should you care about Clubhouse, the new audio-based social media app?

January 19, 2021
Nick Bennett Nick Bennett

How to maximize lead generation via Facebook posts and ads

January 18, 2021
Myriah Anderson Myriah Anderson

Working with IMPACT on paid media: What to expect

January 13, 2021
John Becker John Becker

Instagram advertisers can create branded content ads on creators’ accounts

January 6, 2021
Justine Timoteo Thomas Justine Timoteo Thomas

The top 10 social media trends for brand survival in 2021 [Infographic]

January 2, 2021
Joe Rinaldi Joe Rinaldi

6 holiday campaign examples that are total showstoppers

December 25, 2020
Dia Vavruska Dia Vavruska

Pinterest continues diversity and inclusion efforts with new features and leadership

December 16, 2020
Shandia Drummond-Butt Shandia Drummond-Butt