How To Calculate The Value Of Your Time Spent On Social Media

The ability to advertise on social media platforms at a low cost is crucial for startups and small enterprises. A campaign may reach clients in ways that traditional channels can’t because to targeting and personalization. In addition to providing a rapid feedback loop, social media platforms facilitate the use of the most effective kind of advertising: word of mouth.

Marketing on social media platforms is essentially free to use. In order to elaborate, allow me to… Getting any kind of traction on social media platforms like Facebook or Twitter takes effort and strategy. Timing and, in many situations, sponsored marketing will determine whether or not your social media campaign is a success, unlike those million-dollar Super Bowl advertisements seen by millions.

A Definition of Social Media.

To spread your message via popular social media platforms like Facebook, Twitter, Pinterest, YouTube, and Instagram is the goal of social media marketing (SM). With the use of these platforms, you may showcase your wares in a way that is personal, visible, and direct. As most marketing budgets are not infinite, measuring the return on investment is crucial. You may learn what’s working and what isn’t, where your future resources should go, and how to change your approach with frequent analysis.

How Do We Calculate Profit?

Social media marketing’s return on investment is slightly more difficult to calculate than the expense itself. Sales made directly through an internet channel are simply one indicator of the success of social media. Unlike short-term strategies, the effects of SM marketing on customer behaviour are cumulative. Estimating the magnitude of this effect is difficult, but it can be done by classifying it as either direct or indirect.

The amount of product sales that can be directly attributed to a consumer’s visit to a website is a metric for what is known as Direct Consumer Reaction.

Reactions from consumers that aren’t directly tied to making a purchase but which boost brand recognition nonetheless are considered indirect. Indicators of how much “attention” you are getting include things like the number of people that visit your page, sign up for your email list, download something, “like” anything on Facebook, leave a remark, get in touch with you, or otherwise interact with your brand. Pagemodo, a social media platform, claims that businesses may turn these activities into a calculated cost that is equal to the cost of exposure if you were to buy rather than earn the same amount of impressions on other media. The term “estimated value of exposure” (EVE) describes this consideration. If you spent $1.00 per 1000 views and your ad was saw to 50,000 people, your Total return would be $50.

Putting a Number on It

The time and effort put into social media marketing can be measured, but the return on that investment is more difficult to pin down. There is a lot of marketing done on social media, and although it is true that most of it is “free,” it does cost time and work. Time is money, and if a worker earning $50,000 a year (or you) devotes 10% of their time to social media and planning, the baseline is $5,000. Overhead expenditures such as this must be factored in, as well as any advertising costs that fall beyond the realm of “conventional” advertising, such as online or social media campaigns. Just tally them up to get the “Investment” part of the return on investment formula.

Cost-Benefit Analysis

The following serves as an illustration:

  • A total SM return of $5,000 would be entered.
  • Cost of SM less the projected amount, $4,000
  • Return on investment (in a percentage) equals 125% when the entire cost of SM is divided by $5,000 (which is equal to $4,000).

According to this scenario, a return of $6.25 may be expected for every $5.00 invested in social media.

I’m hoping you can use this as a jumping off point to begin evaluating the success of your social media marketing efforts. Just post a comment below with your inquiry, and we’ll get back to you as soon as possible.