Likes, retweets, and reposts are not indicators of campaign success on social media. And even the CTR and incoming traffic will not show if there is activity on your site. But how can we understand, analyze, and draw conclusions from campaign results?
In this article, you will learn how to find out the effectiveness of social media ads.
4 Ways to Improve Your Social Media Ads
The main indicator of successful interaction in social media with the target audience of buyers is advertising efficiency. Practice shows that advertising is a key digital marketing tool that allows you to increase brand awareness, successful promotion, and attracts the attention of potential buyers to new products and services.
It is advertising that makes it possible to increase the attendance of the Internet-resource, inform the target audience about offers, promotions, discounts, and upcoming large-scale events.
Step 1. Identify the Social Media Marketing Funnel
The process consists of several steps:
According to WriteAnyPapers publication, consumers first learn about you. Your task is to get their attention and interest.
You must now engage users and maintain visibility. Use entertaining or informative content that encourages subscribers to leave comments and repost it.
Time to convert «warm» users and make motivational publications. Invite people to buy something, fill out a form, or subscribe to the mailing list.
Social media involvement
What’s the point of social media? Users who move through the sales funnel unwittingly engage other users. As a result, you work not with one subscriber, but also with his friends and relatives. They also go through a sales funnel and lead other people to your product.
Step 2. Determine Social Media Attribution for Business
Social media attribution is the process of identifying profitable channels, campaigns, and social media posts. It’s time to turn to Google Analytics.
You can find out everything you need to know about attribution models here.
Google Analytics offers several attribution models. But not all are suitable for social media.
Let’s say a user found out about you from a Facebook video. Further ways of development of events:
- The user visits your official page and subscribes.
- In a couple of days, you place the publication with a link to the site (the classic “read more”)
- The user examines the site, subscribes to the news in order not to miss special offers
- A week later, the user receives an email with a discount code, follows the link to the site, and buys the product that he initially learned about on the social network.
Google Analytics offers last-click attribution, but it doesn’t account for social media impact. Therefore, we select the multi-touch attribution.
The model tracks all points in the purchasing path to show which channels and campaigns led to the conversion.
There are several default models in Google Analytics, but what models are interesting from a social media perspective:
- A linear attribution model. The conversion is distributed evenly across all interactions. The model will work if the user receives an advertisement all the way to conversion.
- Attribution “Based on position”. The last and first interactions are assigned equal value. The rest is divided between other points. The model works if first acquaintance and final conversion are important.
- Attribution “Temporary decline”. The main value is the most recent interactions, as it has led to the conversion. The model is suitable for one-off or short stocks.
Step 3. Calculate Your CPA on Social Media
CPA (cost per acquisition) is an advertising model in which the advertiser pays only for certain activities of the user: clicks, subscriptions, purchases, registration.
Let’s say you’ve launched a Facebook campaign to grow your subscriber base. You know how many subscribers have become clients (this is an acquisition). To find out the acquisition cost, you need to know the publication cost. This number divide by the number of users who have followed the link and subscribed.
Campaign spending on social media is also the time and resources you’ve invested. For example, staff time, SMM agency services, advertising, and content costs.
For example, a publication cost is $25. You got 16 conversions. Of these, 25 percent have become new clients.
Total 4 acquisitions from one publication. Divide $ 25 by 4 and get CPA. In this case, it’s $ 6.25.
Step 4. Calculate the ROI
If you know where social media is in the sales funnel and you’ve chosen the right attribution model, you can calculate your ROI.
What is the ROI (return on investment) of social media? The formula is as follows:
ROI = (income minus investments) * 100 / investments.
The social media attribution model will help to determine income from social media. For example, the income from one conversion action is $100. Social media owns 30% – you defined it with an attribution model. Social networks income = $30. ROI may not be 100% accurate, but you’ll get an overall picture of the costs.
Let’s sum up everything said with a little cheat sheet to remember
- When driving traffic to your website, focus on conversions, not cost per click;
- A click doesn’t have to be cheap. Analyze your niche, run many campaigns to understand the average cost;
- While promoting a publication aimed solely at outreach, strive to minimize costs;
- When attracting subscribers, analyze the activity in the group. If activity is not growing, subscribers are not targeted;
Social media is an important source of lead generation for businesses, especially B2B. In order to increase profits, this algorithm will allow you to determine their effectiveness and adjust the marketing policy in the right direction.
Helen Wilson is a content writer who provides help on how to write a compare and contrast essay. She is a wordsmith when it comes to topics about marketing, business, and freelance. Helen likes studying different topics and developing in different areas.