sm-roi-1On our blog, we have several times written about how to calculate ROI of your social media campaigns. But, the following post is inspired from the thoughts of Jamie Truner, the chief content officer of the 60 Second Marketer, the online magazine for BKV Digital and Direct Response. He is also the co-author of How to Make Money with Social Media.

In this post, we will look at ROI on social media with a different perspective, starting from the launch stage of a brand till it becomes matured in the industry.

According to him, around 50% of the business community is still in the Launch stage, about 40% is in the Management stage and about 10% is in the Optimization stage.

Stage 1: Launch

  • The prime target at this stage is to create a social media presence.
  • During the launch stage, almost all company’s focus on setting up the big four: LinkedIn, Facebook, Twitter and YouTube.
  • Depending on the business needs they may focus on Flickr, e-newsletters, blogs, SlideShare and other social media platforms.
  • It may not be wise to look for returns in this stage because this works more like an introduction to social media, where consumers get the feel of the brand.


Stage 2: Management:

  • During this stage, roughly 60% of a company’s efforts are focused on the big four (Facebook, Twitter, LinkedIn , YouTube and additional blogs, or newsletters, if present)
  • About 10% of the focus is on creative and offer development, 20% on tracking quantitative metrics such as traffic, inbound links, Facebook “Likes,” etc., and about 10% on qualitative metrics such as brand sentiment, survey results and customer polls.
  • The corporate objective at this stage is to engage prospects and customers in some way that gets them to connect with the brand.
  • Ideally, this would mean buying something, but it can also mean downloading a white paper, liking a Facebook Page, responding to a survey, or any other measurable evidence that they’re connecting with your brand. This can be looked as a return on investment at this stage .


Stage 3: Optimization:

  • About 25% of the focus at this stage is on the “big four plus more,” and about 30% is evenly split among creative and offer development, quantitative metrics and qualitative metrics.
  • Another 25% of a company’s focus is on improving conversion and optimization of campaigns.
  • This is the stage where companies analyse the customer life time values and actually start comparing it to the acquisition cost.


  • Therefore, in every stage of your social media presence, it is possible to calculate returns, but these returns may not necessarily be quantitative. In the launch stage it is all about giving a feel of your brand, setting a tone of voice while in later stage it is important to indulge in customer acquisition and running campaigns.
  • Nice post to get return of investment through social media optimization method. In my opinion, In every field, management should be very strong. 

  • Nice post to get return of investment through social media optimization method. In my opinion, In every field, management should be very strong. 

  • Hi Charu!

    Excellent Article, All about Social Media steps exactly your blog had and it would be great to read it and it was really nice experiences and knowledge sharing. Keep it Up!

  • Social media is not a magic bullet. It takes time, energy, and creativity. Key ingredients to success include building new relationships and effectively integrating social media into your current marketing efforts.