Measuring Social Media ROI
Content marketing via social media has to generate Return on Investment (ROI). As your number of social media fans and pages of content increase, so should your bottom line.
You can calculate social media ROI simple by monitoring your website traffic and conversion rate over time. As traffic driven for social networks, blogs and content platforms increases traffic and conversion rates you can monitor its effect.
This simple method of measuring social media ROI is even more effective: It puts a value on each visitor to your website or booking page.
Cost Per Click
The cost of Google Ads keywords allows us to put a value on traffic to hotel and apartment complex websites. To attract one visitor to your website using paid on-line adverts costs the following:
Cost Per Click of English keywords (March 2012):
- Hotel in Gran Canaria: €1.11
- All inclusive hotels Gran Canaria: €1.59
- Bungalow Gran Canaria: €0.96
- Sol Barbacan hotel Gran Canaria: €1.40
- Apartment in Gran Canaria: €1.06
Bear in mind that paid advertising only generates traffic while you pay for it. As soon as your budget runs out your visitors disappear. Using social media and content marketing on the other hand continues to generate traffic for years after the content is created and shared.
If your social media and content marketing strategy is producing traffic at a lower cost than paid advertising, then you are getting value for money straight away. You are also investing in future traffic and conversions by increasing your Web and Social Media footprint.
