Metrics That Matter: How to Measure Social Media ROI

Social media isn’t just a brand awareness tool anymore – it’s a powerful business driver. But with all the likes, clicks, and comments flying around, how do you know if your efforts are actually paying off? Whether you’re reporting to leadership, building a budget, or just trying to prove the value of your work, understanding how to measure social media marketing ROI is essential. In this blog, we’re breaking down the numbers, the nuance, and the tools you need to turn engagement into evidence and show the true impact of your strategy.

What Is Social Media ROI?

ROI, or return on investment, is typically calculated by dividing the value gained from an effort by the cost to execute it. For social media, ROI is often associated with revenue, leads, or conversions — but that’s not the whole story.

Social is heavily influenced by organic efforts and long-term brand building. In many cases, ROI includes non-monetary value like:

• Increased brand awareness
• Engagement and reach
• Follower growth
• Community connection

These outcomes may not show up in a sales report, but they provide real business value.

Why Is Social Media ROI Important?

Social media continues to embed itself deeper into every stage of the marketing funnel. Why? Because people use it to discover, learn, and connect with brands they care about.

• 78% of consumers want brands to use social to connect with them.
• 76% are more likely to buy from a brand they feel connected to.
• 57% will spend more with that brand over competitors.

So yes — social media deserves your investment. And measuring ROI helps you:

• Prevent overspending on underperforming tactics
• Improve your strategy with data-backed insights
• Secure internal support for social programs
• Build smarter budgets and resource plans
• Prove the value of your team’s work

Calculating ROI for Social Media

If you want the simple formula:

Social Media ROI = [(Value gained from social media – Cost of social media efforts) ÷ Cost of social media efforts] x 100

Let’s break that down:

• Value gained might include revenue from social campaigns, leads generated, or even conversions attributed to social media.
• Costs include ad spend, software tools, time spent by your team, influencer partnerships, and more.

But it’s never that simple, is it? So let’s make it more actionable.

How to Measure ROI on Social Media

1. Start with your goals

Let’s clear something up first: If your only goal within your social media marketing strategy is revenue or leads, then you might be missing the bigger picture. Despite its growing commerce, social media will never be a tool used solely for delivering profits. Its purpose is, and will always be, about connection. And you (fellow marketer) and I both know that connection is one of your biggest assets in gaining profit in the long run. So don’t discredit it, but do consider how that shapes your overall business goals into social media goals. And you can start a little more broadly:

• Increase brand awareness
• Acquire leads
• Build a strong community
• Boost engagement
• Drive website traffic

From there, you can select which goals are most applicable to each platform based on the existing algorithm and what successes you’ve had on the platform before.

2. Determine which metrics equal success/value for your team

Once your goals are set, the next step is to define what success looks like for each one, and that’s where metrics come in. The right metrics help you translate engagement into evidence and ensure your social media activity aligns with business outcomes.

Here’s the key: Not all metrics are created equal. Vanity metrics (like likes or followers) can feel rewarding, but they don’t always tell the full story. Instead, focus on selecting meaningful metrics that tie back to your specific goals. That could mean prioritizing reach and impressions for awareness campaigns, or tracking conversions and referral traffic for lead generation.

Use this cheat sheet to align goals with metrics that matter:

Also consider platform-specific strengths. For instance, Instagram and TikTok are visual-first and great for driving engagement and discovery. LinkedIn, on the other hand, is ideal for thought leadership, B2B lead gen, and professional community building. Assign platform goals accordingly.

Pro Tip: Don’t forget qualitative insights! Sentiment (are your comments mostly positive or negative?) and share of voice (how often your brand is mentioned compared to competitors) offer valuable context beyond the numbers.

3. Get granular with campaigns and paid strategies

Don’t lump all your social performance into one ROI bucket. Break down performance by campaign and platform so you can compare paid vs. organic, creative types, and ad objectives.

For example, compare:

• Instagram Story swipe-ups vs. Feed post clicks
• Lead gen form completions vs. landing page traffic
• CPC across platforms (Meta vs. TikTok vs. LinkedIn)

Use campaign-specific UTM parameters to track this in tools like GA4 or HubSpot.

4. Track social media expenses

You can’t measure ROI without knowing what you’re investing. That means tracking not just ad spend, but everything that contributes to your social media presence, including time, tools, and talent.

Here’s a breakdown of what to include in your expense tracking:

Time/Labor Costs

Your team’s time has value. This includes everything from concepting, production, review, edits, posting, cross-posting, monitoring, and writing copy. For many goals and metrics, this tracked time will be the most valuable tool in measuring ROI.

Ad Spend

This one’s obvious – but track it by platform and campaign. Knowing where your budget is going helps you calculate ROAS (Return on Ad Spend) and optimize future buys.

Tools & Software

Scheduling platforms (like Sprout Social or Hootsuite), graphic design tools (like Canva or Adobe), and analytics platforms (like Socialinsider) all count toward your investment.

Track these as either monthly or annual recurring costs and allocate a percentage to social if they’re shared tools.

Influencer & Creator Fees

If you partner with influencers or pay for user-generated content (UGC), log those costs separately — they often have different ROI metrics (like engagement rate or earned media value).

Hidden Costs

Don’t forget one-offs like boosted posts, sponsored giveaways, or even paid collaboration tools like Slack or Trello (if your social team uses them heavily).

Tools to Measure Social Media ROI

Seem like a lot to keep track of so far? Well it is! Fortunately, there’s a whole toolbox of platforms designed to help you measure, optimize, and report on your social media performance.

Here are some of the best tools for tracking social media ROI and making your reporting more precise and powerful:

• Google Analytics – Tracks website activity, conversions, and revenue from social referrals.
• Sprout Social – Offers cross-platform analytics, sentiment analysis, and customizable reports.
• Hootsuite – Tracks post performance, scheduling, and basic analytics.
• HubSpot – Great for tying social efforts to leads, email flows, and deal pipelines.
• Socialinsider – Strong for benchmarking and advanced competitor analysis.
• Bit.ly / UTM tools – Track the specific performance of links and content types.

Tips to Boost Your Social Media ROI

Once you’re measuring ROI effectively, the next step is improving it. Here are actionable strategies to get more bang for your social media buck without necessarily spending more.

1. Post with Purpose
Every piece of content should serve a goal – whether it’s brand awareness, engagement, lead generation, or customer support. Avoid “filler” posts. Instead, ask: What do I want my audience to do with this content? Then build around that action with a clear CTA and intentional design.

2. Analyze, Test, Repeat
Use your analytics tools to identify top-performing content and replicate what works. Then, A/B test variables like:

• Headlines and captions
• Image styles or video formats
• CTA buttons or link placements

Continuous iteration leads to smarter content strategies and stronger ROI over time.

3. Be Consistent, Not Just Active
Algorithms love consistency. Develop a regular posting schedule and stick to it. Batch your content creation and use scheduling tools like Sprout Social or Hootsuite to stay ahead without scrambling.

4. Prioritize Engagement Over Broadcasting
Social media is a two-way street. Reply to comments, share UGC, run polls, ask questions – show up as a brand that listens and connects. Engagement not only builds loyalty but also improves reach via algorithm signals.

5. Focus on High-Performing Channels
If a platform isn’t delivering results, it’s okay to pivot. Focus your time and budget on the channels that drive the most ROI. Quality > quantity.

6. Collaborate with Creators & Advocates
Partnering with creators, micro-influencers, or brand advocates can extend your reach and boost authenticity. Even better? Many creators offer more affordable options than traditional ads and come with built-in engagement.

7. Tap Into Social Listening
Use tools like Sprout Social or Socialinsider to track brand mentions, sentiment, and trending topics. These insights can spark new content ideas, inform product development, and help you stay ahead of industry conversations.

Paid vs. Organic ROI: Measuring Each on Their Own Terms

Measuring ROI for paid social is relatively straightforward – you know what you spent, and you can track clicks, conversions, and ROAS with precision.

Organic ROI, on the other hand, is more nuanced. You’re not exchanging ad dollars, but you are investing time, creative strategy, and team effort. The return might not show up as sales on day one, but it’s just as powerful in the long run.

Think about:

• Brand awareness and top-of-mind recognition
• Consistent community engagement and customer trust
• Showing up where your competitors are — and standing out
• Crafting a distinct brand voice that humanizes your business
• Having a platform to reflect your customer’s voice, not just your own
  
  

Both paid and organic efforts deserve a seat at the table. Paid can amplify what’s already working. Organic lays the foundation for trust, relevance, and customer loyalty. The magic happens when they work together.

The ROI You Can’t Always Measure

Everything we’ve shared so far is about how to quantify social performance — and that matters. But sometimes the most meaningful outcomes don’t fit neatly into a metric.

Some of the strongest returns from social media come from the intangibles:

• That “aha” moment when a potential customer sees your reel and finally gets what your brand is all about.
• The trust you build by showing up consistently, with a tone and style that feels human.
• The ability to create with your customer in mind — not just your brand — and show up where they’re already spending hours a day.
• Being part of conversations in your space, even if you’re not the one leading them.

Organic social, especially, often spans multiple touchpoints in the funnel. It keeps your brand top of mind. It creates perception. It drives behavior, even if that behavior isn’t trackable right away.

So yes – measure what you can. Optimize what you know. But don’t forget: not everything valuable has a clean data trail. ROI is also about staying relevant, visible, and connected in a world where attention is everything.

Let’s Elevate Your Social ROI

Measuring social media ROI doesn’t have to feel like chasing shadows. With the right tools, goals, and mindset, you can turn engagement into insight and prove the real value of your strategy. If you’re ready to dig deeper or need a partner to help connect the dots, we’re here for that. Let’s talk social strategy.