How much does Social Media Marketing cost? What’s the ROI?

Do you know how much this social media marketing costs? Then what is the return of investment? Here we guide through!

social media marketing costs and ROI

If you don’t have any idea about how much social media marketing costs, we are giving some rough estimates. If you are an owner of a small or new business, social media marketing can cost between 100-500 per month, while a medium enterprise can spend between 700-1500 per month.

The ROI is if you stand for a return on a social media marketing campaign or the amount of money you can expect to come in after the initial investment amount that is needed to start or execute your social media marketing efforts. This is a great measuring point for measuring the success of your social media campaign. So, if you are a social media influencer, this blog will be important to you. Then, read it at the end! 

What is the ROI?

Simply, this is a measuring point for checking the returns when you are getting on your spending money. It is essential to measure whether you are spending right or not when social media marketing is so costly. In brief, whether you are getting results or returns on your spending. And it is the real meaning of ROI, which means Return On Investment.

ROI = The amount of profit you generate after spending a specific amount.

Do you know how much this social media marketing costs?

If you handle all of your accounts from home, you can figure out the cost by searching how many hours per week your team spends posting updates, creating ads, and responding to comments and other interactions. 

If you decide to hire an agency, they’ll send you a bill (or charge a set fee) every month so it is easy to calculate the cost. Also, you can select to take advantage of the advertising options on one or all of the platforms you use in addition to the cost of managing the free aspects of your social media pages.

Why is measuring ROI so important?

If you find the ROI of digital marketing campaigns, you can understand how worth it is to include social media goals in your overall marketing strategy. Understanding social media ROI also will help you appropriate the right amount of budget for your social media efforts. And it helps you to measure these facts:

  • To know, if our social media efforts generate revenue 
  • What is the most efficient social media campaign?
  • Which marketing channels offer the highest returns? 
  • The tips for optimizing our social media strategy to achieve better results?

So, here are the easy tips for calculating ROI

You can easily calculate your ROI by dividing the amount of money you earn from a campaign by the amount you initially invested in it, with most of the channels. You can use the same formula if you run advertisements on platforms that are created to generate sales. Or, you can compare your investment to the reach, engagement, and website clicks it produces to get a more realistic picture of how well your social media marketing strategy is performing.

Bottom line

There is no doubt that social media marketing is the fastest way to grow your business and increase your brand awareness. The best thing is you need to spend money to get instant and better results even if you can do social media marketing at no cost. But, always mind that to measure your results using these measuring tips! 

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