ROI (return on investment) measures whether marketing pays off. The basic formula: (revenue from marketing − marketing costs) ÷ marketing costs × 100%. Social media ROI should include not only ad spend but also tools, content production and time spent by you or your team.
For a small business, social media ROI is often hard to calculate precisely, because many customers see several posts, ask friends and buy later. Still, a rough estimate is much better than none. Track leads and sales by source (UTM tags, promo codes, asking “where did you hear about us?”), and look at margin, not only revenue.
Example: a catering company spends €400 a month on social media (tools, a freelancer and some ads). It can trace €2,000 of orders with a €1,000 margin to social media. ROI based on margin: (1,000 − 400) ÷ 400 × 100% = 150%.
AI SMM helps collect the numbers: popups and email campaigns attribute sales, and analytics shows which posts bring buyers.
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