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A Simple Way to Calculate Social Media Return on Investment | Social Media Examiner

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Social Media Examiner’s Dag Holmboe has this story on ROI.

Social media return on investment (ROI) is simply a measurement of efficiency. It’s a lot of things to a lot of people: “return on inactivity,” “return on innovation” and “return on engagement.”

However, in a stricter sense, social media ROI is defined as a measure of the efficiency of a social media marketing campaign. This definition might sound complicated, but in reality, it’s quite simple.

What Does ROI Really Mean?

Let’s backtrack a bit.

We’ve all heard what “ROI” stands for, but what’s less understood is the actual meaning and the importance of ROI.

In the financial world, ROI is used to measure the financial efficiency of an investment. ROI is based on the financial formula:

ROI = (return – investment) / investment %.

via A Simple Way to Calculate Social Media Return on Investment | Social Media Examiner.

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Written by Kees Winkel

May 20, 2011 at 17:26

One Response

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  1. Heya i am for the first time here. I found this board and I find It truly useful & it helped me out much. I hope to give something back and help others like you aided me.

    Brittani Orgill

    June 13, 2011 at 00:27


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