Organic reach has decreased drastically over the past few years on Facebook. As a result, Marketers invest more time, money and effort to create good content to get higher engagement and boosting their content. This leads the management or client often questioning: Is my investment in social media really paying off? Through this guide you will learn: 1. How to measure your social media ROI 2. How you can optimize your adspend through top quality content and better targeting

1. HOW TO MEASURE & IMPROVE YOUR
SOCIAL MEDIA ROI

2. Organic reach has
decreased
drastically over the
past few years on
Facebook
THE TYPICAL SITUATION:
Marketers invest
more time, money
and effort to create
good content to get
higher engagement
and boosting their
content
The
management/
client begins to
question if social
media really
helps their
business.

3. YOU’RE NOT ALONE: Here are the top challenges by marketers

4. HOW DO YOU CALCULATE
SOCIAL MEDIA ROI?

5. THE FORMULA
VALUE OF
GOALS ACHIEVED
COST
RETURN ON
INVESTMENT
100
COST

6. 1. What are your objectives of leveraging on
social media?
2. What metrics do you use to measure your
success against these objectives?
Some examples:
• Brand awareness: Reach
• Building a community: Engagement
• Leads: Sign ups; downloads of a whitepaper or ebook
STEP 1: SET YOUR GOALS

7. STEP 2:
TRACKING YOUR GOALS
• Begin measuring your goal completion based on the metrics
you’ve decided upon within your social media platform or your
Google Analytics account:
Good Read: 4 Google Analytics Goal Types ThatAre Critical To Your Business

8. STEP 3:
CALCULATE YOUR SOCIAL
MEDIA INVESTMENT
1. Cost needed to produce content
i.e. video production cost; graphic design
fee; money spent on talent
2. Labour
3. Ad cost

9. EXAMPLE 1: YOUR GOAL IS TO
INCREASE BRAND AWARENESS
SOCIALBAKERS SUITE
Review your Paid Content Spend, Paid Content Impressions and CPM – in this example,
spend is rising by 63%, whereby Impressions by almost 200% while decreasing the CPM
by 45,5% - a proof of a very efficient promotion strategy!

10. EXAMPLE 2: YOUR GOAL IS TO BUILD A
RELATIONSHIP WITH YOUR AUDIENCE
And maximizedEngagement
since October..
Cutting the budget after August… Resulted into decrease of Cost Per
Engagement after October
SOCIALBAKERS SUITE

11. HOW TO IMPROVE YOUR
SOCIAL MEDIA ROI?

12. BACK TO THE FORMULA…
COST OF INVESTMENT
IN SOCIAL MEDIA
RETURN ON
INVESTMENT
100
Answer: Focus on optimizing your
ad spend on social media
VALUE OF
GOALS ACHIEVED COST

13. Every ad is assigned a relevance score after the first 500
Impressions
The goal of the Facebook News
Feed is to show people the stories
that are most relevant to them.
1 10
NEGATIVE
FEEDBACK
Unfollow,Hide Posts etc.
POSITIVE
FEEDBACK
Engagement,Clicks,
Views,Conversions etc.

14. Ads with a very
low Relevance Score
have 40x times higher
Cost per Click.
RELEVANCE AFFECTS CPC OF YOUR AD
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.45
0.50
1 2 3 4 5 6 7 8 9 10
CPC vs Relevance Score
Sample: 26,865 Promoted Posts posted by Brand pages, Time range: 01 Jan 2015- 16 June 2016

15. 1.Your content quality
2.Whether or not you’re
targeting the right audience
RESOURCE: https://adespresso.com/academy/blog/facebook-ads-cost/
TWO KEY FACTORS AFFECTING THE COST
OF YOUR ADS

16. 1. BETTER CONTENT QUALITY = HIGHER RELEVANCE
SCORE
Sample: 26,865 Promoted Posts posted by Brand pages, Time range: 01 Jan 2015- 16 June 2016
Median CPC vs. Post Reach Engagement Rate*
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
0-1% 1-2% 2-3% 3-4% 4-5% 5-6% 6-7% 7-8% 8-9% 9-10%
Facebook measures ‘quality’
based on number of
engagements.
The more people engage with
your content, the cheaper
it becomes to boost it
CPC is 14x higher with
1% engaged users than
with 5 - 6% engaged users.
POOR QUALITY TOP QUALITY

17. Track repeated engagement as they would
tell you whether or not you’re able to retain
your audience and which content can retain
your audience.
Benchmark this against your competitors:
Brand Unique likes Repeated
likes
H&M 72.5% 27.5%
Forever 21 58% 42%
Zara 57.6% 42.4%
Topshop 66.2% 33.8%
Uniqlo 62.2% 37.8%
Stay on top of the content with attracts
the most unique engagers so you can
repeat your success.
Happy Birthday to the
one+only: @llewellyn
November 8 2016
3 469
INTERACTIONS
3 422
REACTIONS
One of the most inspiring days
today onset filming for an
upcoming project I can't wait to
announce. @katvondbeauty
December 18 2016
4 275
INTERACTIONS
4 209
REACTIONS
594
LOYAL LIKERS
475
LOYAL LIKERS
SAMPLE DATA
ENSURE THAT YOU’RE
RETAINING THIS ENGAGEMENT
OVERTIME
SAMPLE: Socialbakers Audience loyalty report

18. VERY BROAD TARGETING
VS.
TARGETING BASED ON
GENDER AND INTEREST
2. TARGETING INFLUENCES YOUR RELEVANCE
Photo credit: Facebook
Targeting:
Women, Aged 18–34,
Lives in United States,
Interested in Fashion
Targeting:
Men and Women, Aged 18–34,
Lives in United States
2/10 8/10

19. HOW DO YOU ENSURE YOU’RE TARGETING THE RIGHT
AUDIENCE?
Age
Employment
Brands she likes
About her
Socio-demo*
15 – 24 years old
High school student, food preparation, services, sales, personal care
Coca-cola,Disney,Dr.Pepper, Xbox, PS, Subway
She lives with her parents in a middle sized city, is in high school and
works part-time in fast-food or at a car wash. She enjoys movies and TV
series, although she is not a kid anymore, she likes to come back to
some animated series. She’s found herself an adult icons looking up to
Kat von D and her cosmetics. Although she watches her favorite
celebrity closely, liking almost every post, she can’t buy the products
since she doesn’t have the money.
Age Relationship status
18-24yo 54% Single 46%
25-34yo 31% In a relationship 31%
35-44yo 11% Engaged 5%
45-54yo 4% Married 19%
SAMPLE: Socialbakers Audience Interest Segmentation Report
Audience Persona %
Cool girl 24,39%
Young Mother 19,51%
Grown Up Teen 12,2%
Celebs & Style 9,76%
Don’t target based on age and gender alone. It is too broad.
Segment your fans or engagers in Facebook into different groups.
Craft a content strategy specific to each of them

20. BENEFITS OF KNOWING
YOUR AUDIENCE
SEGMENTS
1. Going beyond gender and age to
really understand who is
engaging with you online
2. Create content that suits them:
Increase your engagement
3. Improve targeting for ads
4. Identifying new partners to work
with
HOW DO YOU FIND OUT
THAT INFORMATION
Audience interest segmentation report
by Socialbakers
SAMPLE DATA:
Socialbakers Audience
Interest SegmentationReport

21. SUMMARY
To measure social media ROI, you first need to understand your social media
objectives and how you would measure your success. The best way to
improve your social media ROI is to optimize your ad spend.
1. You would need to produce top quality content to attract engagement
2. Don’t focus one-off engagement. Ensure that you can retain this
engager which you spent money to acquire.
3. Target the right audience so you can deliver the appropriate content
which engages them

22. THANK YOU!
j er al di ne. phneah@ soci al baker s. com
9 / 2 0 / 2 0 1 6
J E R A L D I N E P H N E A H
Regional AccountManager