Measuring ROI for Social Media Campaigns - Social Media Handbook Part 7

Hardik Joshi
Dec 12, 2012 19:09 IST
New Update
Return on Investment

This post is a part of our Social Media Handbook series. Please read the previous parts here: Social Media Basics (Part 1), Leveraging Creative Properties (Part 2), Planning Campaigns (Part 3),  Optimizing Content (Part 4), Planning Social Media Outreach (Part 5) & Planning Paid Outreach (Part 6)

Social media campaigns are at the fag end of the fascination phase and brand custodians are looking for quantifying value from such campaigns. Even for the brands who are simply excited about taking a social media campaign live, it would only help to present the power of amplification on social media with some number crunching.

Here are some tips for Measuring ROI for Social Media Campaigns with statistics.


Impressions measured as CPI/CPM (Cost per thousand impressions) could be termed as the most important parameter for any campaign.

Impressions can be tracked through Facebook insights, setting up Google analytics for measuring hits on the campaign tabs, video views on YouTube and various tools tracking impressions for campaign hashtags or Twitter handles on Twitter.


CPR (Cost per thousand people reached) shows the actual reach of a campaign with the amount of people the impressions have been accounted by. Ideally, the ratio of impressions to reach in social media campaigns is 2:1 or 3:1. The mediums of tracking reach for a particular campaign is similar to ones mentioned above for tracking impressions.


This is probably an interesting metric which is yet to be benchmarked by the industry. Cost per Action can be derived with total cost divided by total participants. The amount of money invested versus the actual amount of people participating in the activity speaks about how involving a campaign was.


Another concept which is yet to evolve, but I presume it will be the most important aspect a couple of years from now. Influence Ratio is measuring how many people amplified you message to its audience on social networks.

This denominator being the total reach of the campaign, the numerator combines the number of Facebook shares, application shares, video shares (if any), campaign mentions and retweets. Consistent tracking of Influence Ratio also helps to plan for media budgets for future campaigns and determine expectations of organic contribution for a future campaign


Clicks to a certain landing page, or the company website can also help present good value of the campaigns. The measurement can be similar to the click through calculations done for banner ads.

Other parameters

Other parameters may vary basis the mechanics on the campaign. Some campaigns may involve downloading pdf files, cover photos, bookmarking certain links, people visiting a certain location, etc Pre planning with a focus to drive such parameters can end up with some good numbers to show at the end of the campaign.

Think there are additions to this list? Do share them in the comments section below; it would be a good learning for the readers and me too

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