Learn how to calculate social media ROI. Track your campaigns, analyze real profits, and optimize your social marketing budget step-by-step.
What is Social Media ROI
ROI (Return on Investment) measures the effectiveness of your investment in social platforms. In simple terms — how much money you make from Instagram, Twitter (X), Pinterest, etc.
ROI formula:
(Revenue from social – Costs of social) / Costs of social × 100%
What counts as revenue
- Sales tracked via UTM
- Form submissions
- Bookings or consultations
- Affiliate link clicks
- Subscriptions or digital product sales
What counts as costs
- Time of your team or freelancer
- Paid ads
- Tools and platforms
- Content creation (video, design, editing)
How to track social media ROI
- Set clear goals. Example: “Increase sales by 20%.”
- Use UTM tags. Track exact sources of leads.
- Set up analytics. Google Analytics, native social metrics, or platforms like vibes.su.
- Use tracking pixels. Facebook Pixel, TikTok Pixel, etc.
- Test formats. Stories, reels, posts — compare ROI between them.
How to know if your ROI is positive
ROI > 0% — profit
ROI < 0% — loss
ROI = 0% — breakeven
If your ROI is low
- Check your sales funnel
- Rework your content strategy
- Cut spending on low-performing channels
Conclusion
Measuring social media ROI means managing outcomes, not guessing. If you want your marketing to scale, numbers must speak louder than likes.