Measuring the ROI from Social Media Marketing

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In most cases, the decisions that businesses make are based on the return on investment (ROI) they provide. If you spend $10,000 on a marketing campaign you expect to make enough sales to cover your costs as well as have a few bucks left over. It seems that with social media marketing people are saying that there is no ROI when there actually is.
We all know a key part to increasing your search engine rankings is links and what better sources for links are there then social sites like After getting on the homepage of one of these sites you should see an increased number of incoming links, which should lead to an increase in your search traffic.
Sites like Digg can drive thousands of visitors to a website within minutes which can be very valuable to website owners. Granted those visitors may not click on ads, but if you have something that perks their interest they may sign up for it. Just like any business you have to perk the interest of your potential customers and not the other way around.
Socially driven sites may not have a direct ROI, but they do have one. It may be a little tricky to measure, but there are many benefits that can be obtained from these sites such as links, traffic or even instant feedback that can be used when calculating your ROI.
What do you think about calculating ROI when it comes to social media websites?

Neil Patel
Neil Patel is the co-founder of KISSmetrics, an analytics provider that helps companies make better business decisions. Neil also blogs about marketing and entrepreneurship at... Read Full Bio
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