How to Calculate the ROI of Your Social Media Campaigns

Is it just me or do companies have a hard time accepting social media as a marketing channel? From what I’ve experienced, most companies aren’t willing to leverage social media because they don’t believe it can make them more money.

Well, I hate to break it to you, but that’s a big misconception. Social media can make you money.

To show you how you can track the return on investment of your social media campaigns and use that knowledge to maximize your ROI, I’ve created an infographic that breaks down the steps you need to take to achieve these goals.

Click on the image below to see a larger view:

How to Generate Leads with Social Media

Click here to view an enlarged version of this infographic.


The key to being a good marketer is testing. If you go on your assumptions, in many cases, you will be off. The only way you can figure out what’s working and what’s not is through testing.

Social media is one of those channels that you ought to test. From leveraging it organically to running paid social ads, you can generate a positive ROI.

The big trick to generating a good return through social media is using your creativity. From wall postings to ads, the top social media campaigns that I see working tend to be the creative ones.

So, what do you think about social media marketing? Is it worth leveraging?

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  1. Shehroz Khan :

    Hi Neil,
    Once again Very Very useful information, Sir i need to ask you few things regarding Marketing, but not here will you please mail me your mailing address or Skype id or any instant messaging access, i’ll be great full to you . Thanks

    Waiting !

  2. Siraj Wahid :

    Hey Neil,

    I think the companies who ignore social media are satisfied with their search engines campaigns, they don’t even have time to check that social media could turn into a big money making thing for them.

    I’m into paid traffic and i know that if you are good at converting visits from social media then you won’t ignore it at any cost.


  3. Nikhil Waghdhare :

    Hey Neil Great Infographic,

    I agree with points mention in this infographic. Social media is great to drive ROI from your adverts and campaigns. Many popular blogs already using this tactics to drive lead to their blogs.
    But thank you for giving more in depth detail…. 🙂

  4. If someone opens a restaurant (or another offline business), would you recommend social media for a start even if you’re a social media consultant? I don’t – I tend to direct them into PR/offline-marketing efforts although they’ve approached me to ask about social media before.

  5. Neil. Great Infographic as always. Some great tips. I know from experience that tracking ROI from social media campaigns can be a chore (and doesn’t always get done). Testing, testing, testing has to be the mantra. Keep track of what you do and how it performs then tweak again. Wash. Rinse. Repeat.

    Thanks for the content. -John

  6. Rohit Palit :


    First of all, amazing stuff! 🙂

    Just wanted to let you know about a possible typo within the infographic. Under the ‘labour cost’ column, there’s a small error in the last row. I guess it should be $67,500 instead of just $6750.

    Continue smashing records within the internet marketing industry and in the web as a whole! 🙂


  7. Great stuff, Neil. Much appreciation all the way from Kenya.

  8. As always, great stuff, Neil! I am finding Facebook to be a great place for B2B lead gen (currently paying $3/lead). I like it more than LinkedIn. Setting up a funnel with a great offer (lead magnet) and laser targeting your audience = BIG ROI!

    I was never a fan of paid traffic until this year, but have learned once dialed in, it is both PREDICTABLE and SCALABLE.

    Two beautiful words when it comes to marketing a business 🙂

  9. Tom @ Raise Your Garden :

    Neil, love the infographic. After seeing you use them I ended up posting one on our gardening site. Our readers loved it. Thanks for helping us learn to be more creative.

  10. another excellent share neil. I have personally observed some great results for local marketing in food niche. one more thing to add, I got seo ranking for 120 keywords without doing any seo stuff. All we have is an active FB page with active audience. We have spent around 2000 USD and generated 40,000 USD and a local brand in return.

    P.S I love your smile snaps, impressive 🙂

  11. Ryan Passarelli :


    I use different landing pages for different campaigns this makes it much easier to track what visitors are coming from where. Also, if you are promoting a blog post you made you can make use of links because they help show the traffic distribution.

    Using a seperate landing page is also helpful because I can a/b test at the same time. Testing slight variations of the same page to find the best converting page.

    All and all social media is a huge benefit if you target market is using social media. If it’s not then it isn’t wise to invest money into it. For instance one segment of my business is computer repairs and most of the customers that come through my doors are elderly people that wouldn’t be on any social media sites so to try and reach them their is kind of pointless.

    Thanks for the other information Neil!

  12. Great article Neil, Social Media pays off good in case of ecommerce and well as increasing readership of your blog. I have mainly using facebook for all social media activities currently..

  13. Hi Neil: What do you say to those who equate social media optimization with the stock market: i.e. Once you have received the advice from a “mass’ network (and not an insider) the critical mass of people using the information will make it almost useless.

    • I think there are similarities but the ROI is very hard to calculate with social media. It’s more of a sentiment based ROI calculation.

  14. First of all, thanks Neil for such a nice looking and thoroughly described infographics.
    I am an optimizer and also worked on social medias though have very little experience on paid marketing/search but this infographic gives a lots of insights about how to measure the ROI. I have my own methods of measuring the goals & returns but I am seeing this method is far better for measuring the social media than mine. I shall explore this in this week and keep you posted about my experience and results.

    Soumya Roy

  15. WOW Neil awesome infographics 🙂 if we just create awesome+ useful content + necessary call to actions at right spot then the content will go viral for sure. Best example is 9Gag..

    Sometimes acting clever gets us tons of leads like right now football world cup is going on. If we target with awesome deals & offers then we can get super awesome conversion rates.

    Looking forward great information from you.

    Thanks Neil.

  16. thanks Neil Sir for fully described infographics. Many doubts have clear with this infograph, I will use this method now. and agree with that “The key to being a good marketer is testing.”

  17. Thanks so much, Neil !! … Finally I found a proper information about calculating ROI of social media. By the way, I liked this info-graphic representation too. Very simple & Informative.. Thanks once again 🙂

  18. Hey Neil,

    After long weekend, got such a wonderful information related #Social networking. I rely appreciated you.
    Is there any chances to get lead from Facebook display ads campaign for Business Cards.???
    Thanks for sharing.

  19. Hi Neil,it’s been great to launch into your media has no doubt great importance at present.we must need to concentrate on it.Thanks for such a great infographic.

  20. I remain your biggest fan in Nigeria. All your tip are usually very insightful. Success of is also partly attributed to your lessons. You Rock Neil.


  21. Brad Travers :

    Social Media ROI has always been a thorn in my side and prevented me from fully implementing campaigns for clients. This was super helpful Neil. Much appreciated!

  22. Julian Adorney :

    Hey Neil,

    I’m sorry to say, I thought this blog was pretty elementary.

    Normally I love your stuff. Quicksprout U is incredible, you and other have saved my life on the forums, and inhaling your Advanced Guide to SEO one weekend actually got me a job (and made me good at it!)

    But this blog–most marketers already know this. You just set up Google Analytics to track conversions by channel, do some math to get your LTV (which everyone should know anyway) and you’re done. Maybe it’s because I’ve been devouring your blogs and books for the past year that this seems old hat (irony of ironies); I’m not sure.

    I’m not telling you this to say “you owe your readers better!” or something. You’ve already given away a huge amount of great knowledge, which is awesome.

    I’m just saying that you’re clearly brilliant and can write incredible and useful blogs and in this case–I think you can do better.

  23. Jasper Oldersom :

    I like that you mentioned assumptions are mostly wrong. Testing is the way to go 🙂

  24. Hamza Sheikh :

    Seriously, thanks for shedding more light on social media ROI. My major clients are from local market, and they always react whenever I ask them to invest in the social media.

    I always end up in serving wrong stuff to them, but after reading this I can now try my best in serving the right thing using my tactics.

  25. Chris Carpenter :

    Wow, this is an amazing info-graphic, I’m really happy to find out your blog.

    Thanks, hope to get more meat from your blog.

  26. Raffaele Negro :

    I wonder how would you set the monetary value to companies that reach a small portion of customers (like Investment companies, as an example).
    They’ll have to calculate their LFT value with huge amounts of money divided by few “investors”. Consequence: they’ll be asked for huge budget investments, following the infographic.

    I’d love to hear your point of view 🙂

    • It’s actually easier for those guys… one client pays for all of their expenses for life, plus more.

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