How To Get the Best ROI From Social Media
Social
Dec 14 2023
Social media is a powerful tool that your brand can use to reach new audiences and build social proof. And because social media is a popular form of entertainment and connection for everyday consumers as well as brands, it’s a near-perfect venue for networking with and marketing to others.
But just as there are many types of social media users, there are many different social media platforms — and not all of them offer the same return on investment (ROI) for your business. Here’s a closer look at how to determine which platforms deliver the best ROI and the strategies organizations can use to boost their returns.
Building Your Brand on Social Media
The great thing about social media marketing is that businesses can start an account with no budget (organic social media) and still reach people. For any business, the ability to go online with videos or written content at little to no cost is one of the best ROIs that exists. However, once you have a marketing budget behind you (paid social media), it’s important to be methodical about how you post, what you share, and where.
Not all social media platforms are the same; one person might turn to X (formerly Twitter) for news updates while another is simply there for memes. After analyzing how your audience engages across social platforms, you may need to employ different tactics to get your content seen by the right audiences depending on which one you’re using.
While most social media platforms have strong potential to reach your intended audience with the right strategy in place, not all platforms are as effective as others. The ROI on each popular social media platform will depend on you being able to leverage them correctly.
Which Social Media Platforms Have the Best ROI?
According to HubSpot’s Social Media Trends 2023 Report, marketers believe Instagram offers the highest ROI, with 25% of respondents agreeing that the platform offers the biggest bang for their buck. Facebook followed closely behind with 23% of marketers saying that it offered the highest ROI. (YouTube, TikTok, LinkedIn, and X rounded out the top six.)
What leads to these platforms having such a positive ROI for brands? There are a few factors.
Large numbers of monthly active users. Instagram has over 2 billion active users who use the platform monthly, and Facebook has 2.89 billion. A large base of active users creates opportunities for brands to experiment with new strategies and capitalize on platform features that can positively impact their bottom line. For example, Instagram has focused on expanding its ecommerce capabilities, and now up to 90% of users on the platform follow at least one brand.
Specific user demographics. For instance, if you want to reach professionals, you’ll find over 750 million on LinkedIn. For a range of people from Gen Z through Baby Boomers, YouTube could be a better bet.
Advertising options and opportunities. From Instagram Reels to Facebook Ads and Marketplace, the options for marketers to improve brand visibility can lead to great ROIs on these platforms. Facebook, for example, allows marketers to advertise in several different ways. You can advertise on your page’s Feed or through Facebook Lead Ads. You can also reach out to potential customers through Messenger or post content directly to your feed.
Although all these platforms can result in high ROIs for your brand, you need to know how to leverage them to get the most out of them.
3 Social Media Strategies for Improved ROI
Before you can maximize your brand’s social media presence, you must understand your audience’s wants and needs. Failing to do your research now could lead to lackluster results. Start with the following strategies to boost your social media ROI.
Improve consumer intelligence
Improve your consumer intelligence by creating a consumer intelligence strategy. Know what they say about your products and how they’re using them, so you can create relevant content. A competitive analysis could make all the difference in terms of your ROI. Check Google rankings to identify your competition, get to know your keywords, study audience insights, and build better brand awareness by reviewing social search results and learning what your competition is doing on social media.
Start making videos
Make videos. Video content boosts engagement across all social media platforms. In fact, two-thirds of consumers have admitted that they’d rather watch a video to learn about a product or service compared to reading about it. Creating videos about your services or products helps people understand the benefits, which helps to generate interest and, eventually, improve your conversion rates.
Leverage ecommerce
Make your products or services available for purchase on the platform. Social commerce is powerful and allows your audience to buy without leaving the platform. Shoppable ads are key here. For example, if you create a shopping ad on TikTok, that ad will pop up during a piece of video content. The user can click on it and shop immediately without leaving the app. Alternatively, you could try Instagram Shopping, which offers the opportunity to run a storefront on your brand’s Instagram page.
Social media, and how you approach it, is going to be a little different depending on the platform. Each platform serves a different purpose, has unique audience demographics, and requires a distinct approach. Taking the time to understand your audience, investing time in video content, and experimenting with social commerce, you will see significant improvements in your ROI.
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