How to Drive Trackable Revenue Through Social Media Campaigns

There are more than 3.5 billion people worldwide on social media today. Facebook still claims the largest number of users, coming in at over 2.2 billion, while other social media platforms such as YouTube and WhatsApp have more than 1 billion users. LinkedIn’s not far behind, boasting an impressive 575 million registered users across the globe.

Why are we telling you this? Because there’s money to be made in the social media marketing world, but only if you know how to utilize the platforms—and track your revenue—correctly. On paper, it may seem simple enough—you write some add copy, post it to the internet, and wait for the money to come rolling in. Of course, like most things in life, it’s never that simple. And, if you’re not tracking the revenue you’re actually pulling in from the various platforms, you could be spending more time and energy on channels that aren’t worthy.

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Let’s take a moment to explore what trackable revenue means in the social media sphere and learn how you can drive money to your bottom line using these ever-popular channels.

1. Set Trackable Goals

No matter what type of campaigns you’ve opted to ensue, you won’t know how well you’re doing if you don’t set a baseline, and you won’t know if you’re achieving goals unless you’ve set them. Now, it might sound tempting to think the sky is the limit when you’re trying to make money, but you have to be reasonable.

If you want to increase your likes by 1 million by the end of the month, that’s not exactly a reasonable goal. However, if you want to increase your likes by 3%, that might be doable. Once you’ve gotten your likes and follows on a steady growth trajectory, the revenue should be soon to follow. After all, “More than 40% of digital consumers use social network to research brands or new products,” according to Hootsuite, so it only makes sense that your revenue will begin to climb as your followers increase.

However, “58% of brands say measuring the effectiveness of social is a challenge, and only 34% measure social ROI.” In other words, if you’re struggling to measure the rate of return on your social media campaigns, you’re not alone. It’s worth noting that social follows and shares shouldn’t be your main concern when you’re talking about the money your social media marketing campaigns are bringing in. It’s nice when someone clicks on a Tweet, but what you really want to know is if that click resulted in a purchase. You need to track the interaction all the way through the process.

2. Track Your Goals

This obviously goes hand in hand with step #1. Once you’ve set a baseline and decided on your goals, it’s time to get into the nitty gritty of the data you collect. You’ll probably use a tool like Google Analytics to track stats related to your traffic. This tool provides at-your-fingertips information pertaining to bounce rates, new users, average session duration, and more. But, did you know it will also give you information pertinent to the cost of customer acquisition?

Sprout Social offers a great tutorial for using Google Analytics to measure social ROI for specific social media campaigns. Once you’ve defined your goals, you can assign a monetary value to each conversion, and the tool will take off, calculating your revenue for you.

Image Credit: Sprout Social

3. Be Where Your Audience Is

It might seem tempting to create an account on every social media platform available, but that’s a bad idea for a few reasons. First, it’s way too much work to deal with the upkeep necessary to engage audience members on every single social media platform. Second, your audience is probably not on every platform; instead, they’re shopping for your products and services in specific places. Once you figure out which platforms your customers call home, your time and effort will be better spent honing your future campaigns.

B2B audiences, for example, tend to hang out on LinkedIn. In fact, there are around 575 million members on LinkedIn, 61 million of whom are senior-level influencers and 40 million of whom are their organizations’ decision makers. If your marketing efforts focus on B2B marketing, LinkedIn is a great place to start.

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On the other hand, if you’re a photographer or a restaurant that serves up super aesthetically pleasing dishes, your marketing money is probably better spent on Instagram. According to HubSpot, Instagram sees over one billion active monthly users, which means there’s a lot of money to be made if you position your campaigns in front of the people who are most likely to pay attention to them.

Of course, since Facebook still holds the highest user percentage, it’s a strong bet that much of your audience can be found there, particularly if you’re operating in a B2C industry. Before you invest all your chips in Facebook alone, though, it’s important to weigh other options to ensure you’re not missing out on potential revenue streams that could be more lucrative.

4. Hire Social Media Influencers

Maybe you’ve tried to fight the fad, but the fact is, social media influencers are here to stay. You might wonder why big-name brands fork over cash to people like Kendall Jenner, who, for the record, boasts an Instagram following of 108 million people. That’s because social media influencers work. The influencer marketing company Tomoson conducted an influencer marketing study, which yielded the following results:

  • Companies are making $6.50 for every $1 they spend on influencer marketing
  • 59% of companies plan to increase their influencer marketing budgets
  • Influencer marketing is the fastest-growing online customer acquisition channel
  • Influencer marketing ties with email marketing as the most cost-effective form of customer acquisition

5. Track Your Social Media Expenses

As you know, ROI isn’t just about revenue. In order to properly calculate your net income, you need to know how much money you’re spending on your efforts in the first place. When it comes to social media marketing, you’re probably spending cash (in one way or another) on the following categories:

  • Time. Yes, time is money, and the more time you’re spending on social media campaigns, the more time you’re being taken away from other tasks you or your team could be doing. Add up the specific amount of time each employee spends on each individual campaign—regardless of whether that person is hourly, salaried, or an independent contractor—so you can see exactly how many hours were invested in each campaign.
  • Content. Are you paying an agency or freelance copywriters to come up with your landing page content or status updates? Don’t forget to include these costs in the overall expense of the project. If you did these things yourself, make sure you track your efforts in the time category.
  • Tools. There are tons of great free tools on the market, but if you’re using any social media management systems that require subscriptions or one-time fees, be sure you account for those costs in the overall expenses of the project. If you pay an annual subscription, or if you have multiple campaigns going on simultaneously, be sure you only attribute the cost of the tools for each individual campaign. For example, if you had a one-month campaign running on a tool you pay for each year, you would divide that cost by 12 to see how much was attributed to that unique campaign.
  • Ad Costs. Promoted Tweets, Facebook ads, and other advertisements that appear in the social sphere cost money. This number should be pretty easy for you to track as you figure out your total ROI.

Do you need help figuring out how to drive trackable revenue through your social media campaigns? Our team at The Weinstein Organization is here to assist you with everything from strategic planning to response tracking, measurement, and analysis. Learn more about the services we can offer your business today!