Busted: The Myth That You Can't Measure ROI from Social Media Marketing

Busted: The Myth That You Can't Measure ROI from Social Media Marketing

The Claim: You can't measure the return on investment (ROI) from social media marketing.

The Verdict: False.

For years, marketers have repeated the claim that social media marketing lacks clear, measurable ROI. This myth has persisted from the early days of Facebook brand pages to the TikTok-driven campaigns of today. But new data, advanced analytics tools, and successful case studies have proven that ROI from social media is not only measurable—it’s vital.

Why the Myth Persisted

Back in the 2010s, surveys like the one from the Lenskold Group reported that fewer than 20% of marketers felt confident in quantifying social ROI. Anecdotes spread quickly: marketers lamented the murky relationship between likes, shares, and actual sales. In truth, many were looking at the wrong data.

Breaking Down ROI

The formula for ROI is simple:

ROI = (Gain from Investment - Cost of Investment) / Cost of Investment x 100%

This can be applied to any social media campaign. Whether a company spends $1,000 on a targeted Instagram ad or $10,000 on a cross-platform campaign, tracking performance is entirely possible with the right approach.

The Metrics That Matter

Measuring social media ROI doesn’t rely on vanity metrics like likes or comments. Today, marketers focus on:

  • Lead generation

  • Click-through rates (CTR)

  • Conversion rates

  • Customer acquisition cost (CAC)

  • Lifetime value of a customer (LTV)

Advanced tools like Google Analytics, UTM tracking, CRM integrations, and platforms like Hootsuite and Agorapulse make it possible to connect social engagement directly to sales.

Real-World Proof

British Telecom (BT) provides a compelling example. By shifting customer support to Twitter, the company saved an estimated ÂŁ2 million in annual costs, improved customer satisfaction, and enhanced response time. These are tangible benefits that directly reflect ROI.

Meanwhile, Hootsuite's 2024 Social Trends report found that 96% of marketers surveyed said social media delivers positive ROI. Despite this, 68% admitted they still struggle to prove it—mainly because they’re not using the full range of available tools.

The Bottom Line

With clear goals, strategic tracking, and the right analytics tools, ROI from social media can be measured just like any other marketing channel. The myth that it can’t? That’s just outdated thinking.

Works Cited

  1. Hootsuite. "How to Prove and Improve Social Media ROI in 2024." Hootsuite Blog, 2024. https://blog.hootsuite.com/social-media-roi

  2. The CMO. "Demand Generation: Measuring Social Media ROI." The CMO, 2024. https://thecmo.com/demand-generation/social-media-roi

  3. Dr. Natalie News. "ROI of Social Media: Myths, Truths, and How to Measure." drnatalienews.com, 2023. https://www.drnatalienews.com/blog/roi-of-social-media-myths-truths-and-how-to-measure

  4. Omnifunnel Marketing. "How to Accurately Measure Social Media ROI in 2025." Omnifunnel Marketing Blog, 2025. https://www.omnifunnelmarketing.com/blog/how-to-accurately-measure-social-media-roi-in-2025

  5. Agorapulse. "Social Media ROI 101." Agorapulse Blog, 2024. https://www.agorapulse.com/blog/social-media-roi/social-media-roi-101

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