We all know social media marketing is one of the best ways to promote your brand quickly and cost-effectively.
And why not? Here is a fun fact: 83% of marketers agreed that social media marketing leads to increased exposure, 73% mentioned increased traffic, and 65% generated leads, according to a 2024 marketers survey by Statista.
So what’s the magic formula?
While everyone’s talking about how great social media marketing can be, very few of them crack out what exactly is to be done to get the best ROI. The terminologies are new, the techniques to succeed are different, and the choices are confusing with many strategies. We are here to help simplify just that to help you crack and up your ROI with minimal effort. Let’s get started.
What is Social Media Advertising?
Social media advertising means paying to show your content to the right people on social media platforms. These ads appear in your audience’s feeds, just like regular posts or Stories, but with labels like “sponsored,” “promoted,” or “boosted” to let them know it’s an ad.
Different social media platforms have their own rules and ways of showing ads. For example, on Instagram, you can place ads in the feed or Stories using images, videos, carousels, or polls. On LinkedIn, the options are different, like text ads, dynamic ads, or sponsored messages.
Some ad formats, like image ads, are common across all platforms. However, the style and message of your ads should change based on the platform and its audience.
For instance, people might use Facebook and X (formerly Twitter), but their reasons for using each are different. Facebook is more for entertainment, so your social ads can be fun, while X is better for sharing informative content. Tailor your ad copy and design to match your audience’s wants on each platform.
How do you Calculate Social Media ROI? What Is ROAS in Marketing and Ideal ROAS?
ROAS, or Return on Ad Spend, helps you see how much money your social media ad campaigns make compared to how much you spend on them. It’s a simple way to check if your ads are working well and bringing in a good return.
How to Calculate ROAS
To calculate ROAS, divide the revenue earned from a campaign by the amount you spent on it. For example, if you spend $100 on ads and make $400 in sales, your ROAS is 4:1. For every dollar you spend, you earn $4.
ROAS helps you decide which campaigns are worth continuing and which to adjust or stop. If a campaign isn’t delivering enough revenue compared to its cost, it might not be a good use of your budget. On the other hand, if a campaign shows a high ROAS, it’s worth investing more into it.
What’s an Ideal ROAS?
The ideal ROAS depends on your industry and the platform you’re using. Generally, a ROAS of 2:1 (earning $2 for every $1 spent) is the minimum goal for many businesses. However, a well-optimized campaign can achieve a ROAS of 4:1 or higher.
ROAS Varies by Platform
Different social media platforms perform differently for businesses. For example, Instagram often delivers a higher ROAS because its visual content tends to engage audiences better. On the other hand, platforms like Google Ads might have a lower average ROAS, closer to 2:1.
Source: HubSpot’s 2024 Social Media Trends Report
This doesn’t mean one platform is better than another—it depends on your audience and campaign goals. Testing on different platforms is key to finding out what works best for your business.
ROAS is only one piece of the puzzle regarding understanding your social media ROI (Return on Investment). To see the whole picture, you must factor in all your costs, like creating social media ads, platform fees, and the time spent managing your campaigns. By looking at all these details together, you can plan smarter strategies to get better results and maximize your investment.
[Recommended reading: 9 Easy Tips for Making Your Social Media Stand Out]
Which Strategies Get the Most Social Media Advertising ROI?
- Refine Keywords on a Timely Basis
Keywords are essential for making your content discoverable. Trends and search behaviors change often, so you must regularly update your keywords. Use tools like Google Keyword Planner or social media insights to find trending terms that match your audience’s interests.
For example, if your audience shifts from searching “eco-friendly fashion” to “sustainable clothing,” adjusting your keywords to reflect this can help your content stay relevant and visible. By staying current, you ensure your campaigns connect with the right people.
- Align Goals Per Platform and Collaborate with Influencers
Each social media platform serves a unique purpose, so tailor your goals accordingly.
- Use Instagram to showcase your products.
- Leverage LinkedIn to build professional connections.
- Utilize TikTok for fun, quick, engaging videos.
Partnering with influencers who align with your brand values can help amplify your message. Influencers gain the trust of their audience and can make your campaigns more relatable and engaging. Choose influencers whose followers match your target audience for the best results.
- Create a Strong Social Media Landing Page
When someone clicks on your ad, they should land on a page that matches the ad’s promise. A social media landing page should be simple, visually appealing, and include clear calls to action like “Shop Now” or “Subscribe.”
For example, if your ad promotes a holiday sale, your landing page should immediately showcase the discounted items, making it easy for visitors to act quickly. A seamless connection between the ad and the landing page builds trust and boosts conversions.
- Opt for Short-Form Video and Data-Driven Ads
Short videos are perfect for grabbing attention quickly. Platforms like Instagram Reels, TikTok, and YouTube Shorts are great for sharing bite-sized, engaging content. For example, showcase your product in action or share a fun tutorial.
Pair these videos with data-driven ads. Use analytics to find out what works best for your audience—specific times to post, video formats, or themes. This combination of short videos and strategic targeting ensures engaging and effective content.
- Run Creative Strategies to Test Ads like Humor and Repurposing
Experiment with different styles and approaches to keep your social advertising fresh. Inject humor to make your content more relatable, or repurpose older high-performing posts by updating them with new designs or angles.
For example, you could turn a popular blog post into a short infographic or create a fun meme related to your brand. Testing new ideas helps you discover what resonates most with your audience.
- Build a Strong Affiliate Marketing Program
An affiliate program allows others to promote your products in exchange for a commission on each sale. This is a low-risk way to expand your reach while building strong partnerships.
Start by identifying bloggers, influencers, or websites that align with your brand. Give them unique codes or links to share with their followers. Affiliates benefit by earning commissions, and you gain more exposure and sales—everyone wins.
- Build Brand Loyalty with Discounts and Coupons
Offering discounts or coupons can encourage repeat purchases and attract new customers. For example, create exclusive deals for your social media followers or run flash sales to drive quick action.
Make the promotion easy to understand and redeem. Use bright graphics and clear instructions like “Use Code SAVE20 at Checkout” to ensure your audience doesn’t miss out. Discounts create excitement and show appreciation for your customers’ loyalty.
- Create a Personal Connect with Consumers through User-Generated Content
User-generated content (UGC) is when customers create content featuring your brand. This could be a selfie with your product, a review video, or a social post.
Encourage UGC by running contests, creating a branded hashtag, or simply asking your audience to share their experiences. Highlighting this content on your own page builds trust and strengthens the personal connection with your customers.
- Use Time-Sensitive Promotions and Incorporate Shoppable Content
Limited-time offers create a sense of urgency, pushing customers to act quickly. Pair this strategy with shoppable posts that let people buy directly from their social media feeds.
For instance, promote a “Weekend Only Sale” on Instagram and let users click on the product image to purchase it immediately. This combination of urgency and convenience makes it easy for customers to shop without hesitation.
- Establish Consistency and Scale to Reach New Audiences
Consistency is the key to staying top-of-mind for your audience. Stick to a regular posting schedule and ensure your content aligns with your brand voice.
To grow further, explore new platforms or invest in paid social advertising. For example, if your current focus is Instagram, try expanding to TikTok or Pinterest to reach different demographics. Scaling your efforts ensures you continue to engage existing followers while attracting new ones.
Key takeaway – Skyrocket Social Media ROI with Global Upscale
Social media advertising is a powerful tool for attracting potential customers to your business. However, every ad campaign costs money, and ensuring this investment delivers results is crucial. That’s where Return on Ad Spend (ROAS) comes in. ROAS is a key metric that helps you measure whether your ad campaigns generate enough revenue to justify the costs.
Intelligym, a leader in cognitive training for athletes, partnered with Global Upscale to overcome inconsistent social media activity and low sales. We implemented a comprehensive digital strategy, including YouTube and TikTok optimization, targeted Google and YouTube ads, and influencer campaigns. High-quality promotions showcased their hockey and soccer products, while an Athlete and Coach Ambassador Program fostered community growth. These efforts resulted in over 12,000 new social media followers, increased brand visibility, and higher annual recurring revenue (ARR), demonstrating the impact of a focused and strategic social media approach.
Beyond the ads themselves, consider external factors that might influence your campaigns. Are your product pages optimized? Is your branding consistent across channels? Addressing these issues can enhance your ad effectiveness and overall ROAS.
Implementing these strategies will make your advertising dollars work harder for you, yielding higher returns. At Global Upscale, we specialize in creating social media campaigns that attract attention and drive real results. Let us help you turn your ad spend into a revenue powerhouse. Schedule a free 30-minute strategic consultation with Global Upscale today!