Determining Social Media ROI and Metrics
In the reading section of this unit, you read about Social Media ROI. Please complete the following worksheet. Save your file and submit your answers for this assignment on Blackboard by uploading this file in the assignment submission area.
What is the strict definition of ROI? Can monetary ROI be used alone to justify investment in Social Media? Why or why not?
The strict definition of return on investment is a calculation used to determine how beneficial an investment is by taking the expenses and subtracting them from the gross profit.
I don’t think it could be used alone in social media because a social media campaign is not a direct investment. Social media is essentially a tool to push visitors into the sales funnel, so other metrics like ROE (return on engagement) would be more appropriate.
Choose a social media venue covered in one of the units this semester. Which social media application did you choose? What quantitate measurements that can be applied to this particular venue?
I chose Twitter as the social media venue for this question.
Quantitative measurements that can be applied to Twitter are: the number of tweets per day, tweet density by time, number of followers, total retweets, number of friends, mention count, follower to followed ratio, percentage of follow-backs, follower mentions, and click-through rate for links. I am certain there are more.
Measuring the quantitate effects of Social Media (clicks, visits, search rankings, and retweets) is fairly straight forward. What are some of the qualitative effects and how could these be measured?
I didn’t use the textbooks to find qualitative measurements for Twitter. What I did find on the Internet were measurements involving linguistic analytics and relationship building.
A linguistic analytics tool, such as TweetPsych, analyzes the content of tweets in order to discover patterns. TweetPsych builds psychological profiles of Twitter...