How to EQUATE ROI on Social Media
Social Media advertising has great ROI, return for investment, and it is smart business practice to see specifically how and where it is working for you. To understand the equation, you must first perform the groundwork, so I will share with you from top-to-bottom this process. Once done, this will become an automated system for you.
To find your ROI, Return on Investment, you must first know where you are going. This forward thinking is a crucial step and cannot be missed. Building sales and equating ROI is like building a shed and deciding if the shed is producing value and can be used in other ways. To build the shed you must ask yourself why (the goal), and then you need your measurements and the tools and the data to equate the feasibility.
Strategy and forecast must be on your mind from the beginning steps.
I have also made it simple for you in an interactive sheet that you can download free from our website at www.bfpvideos.com.
RAW EQUATION EXPLAINED
Revenue from Social Media – Cost of Social Media Activity
Cost of Social Media Activity
ANALYTICS AND SALES DATA COLLECTED/MONTH
10 VIDEOS = 1000 CLICKS
1000 CLICKS = 500 LEADS
500 LEADS = 100 PURCHASES
TRAFFIC TO LEAD CONVERSION RATIO – Useful statistical information to have
500 = LEADS
1000 = 50% = CLICKS
LEAD TO SALES CONVERSION RATIO - Useful statistical information to have
100 = PURCHASES
500 = 20% = LEADS
ROI EQUATION IN PRACTICE
NUMBER OF PURCHASES = 100
REVENUE PER PURCHASE = $100 (each of your product is $100 in this instance)
COST OF SOCIAL MEDIA = $500 (is what you spent in this campaign, not including cost of video in this instance because video is a one-time cost)
# of Purchases x Cost of Purchase = Revenue from Social Media
100 X $100 = 10,000
Revenue from Social Media – Cost of Social Media
Cost of Social Media
$10,000 – $500
= 19% OR 19.1 = EVERY $1.00 SPENT HAS GENERATED $19.00 IN SALES
Your ROI equation
To get a free download of an interactive spreadsheet to plug in your own figures, visit our main page on the website.
Professional Video is the #1 communicator today because it delivers efficiently and on an emotional level, addressing the needs of your target audience so they will engage with you further.
Your message -> delivered how your target wants to receive it = conversion for your business.
BFPVideos are experts on Video Marketing and Video Production.
I hope this has helped.
If you have any questions or would like a free consult, I would be happy to assist.
All the best to you and your business
How to Distribute Video
If you have a video or are thinking about making a professional Marketing video, what will you do with it? I suggest going with a professional marketing production company, because if you are going to take the time to do something, the first impressions are so very important to keeping your audience engaged. Take that extra step to put your best foot forward because video is out there for all to see. You are being judged by intelligent viewers.
When you make a video, where you post it makes a difference. It also determines your target audience, the length of your video and if you need to incorporate text in it. The sweet spot for time in a video is 90 seconds or less. If you engage your prospects for the first 8 seconds, then that buys you the next 30 seconds. This buys you your conversion. Video is a strategy that is as individual as you are.
I will show you how to network your distribution.
The obvious avenues are in Social Media:
Your home base is YouTube where you can grab your videos and distribute to other avenues. Here you can get a subscriber base and your analytics. YouTube is your broadest audience but be mindful that without concentrated strategy, you are a little fish in a big pond. For today, let's just think of it as a must-have place and where you start your root video to get your analytical data.
Set yourself up with Google analytics to give you more detailed statistics. https://analytics.google.com. This is the forum where all of your data will be filtered from so you can see where you are getting the most traction in your website, search engines, demographics and videos. "You can't know where you are going if you don't know where you have been."
Of course, video on your Website is a must. It is where your people go to engage and learn about you and what you can offer! Whether you put your video on your home page or make Blogs (Vlogs), pull the URL from YouTube (your base)attach it onto your Website, then all of their viewing is captured in Google Analytics.
From your YouTube, attach the URL into Facebook. Facebook is primarily B to C. Business to Customer and you may likely get 2% of the market unless you go to paid ads. The good news is that it is not very expensive for your return and you can decide how much to spend. Facebook users likes to watch videos, but usually without sound, so it is a good idea to attach closed captioning text to each video. This is easy to do with YouTube.
Also, from YouTube, you can copy and attach the URL as a post into Linked-in. Linked-in is B to B. Business to Business. This forum does not want to see products to be sold but will be receptive to business networking.
Instagram will only accept videos under one minute. This is a younger crowd and it is huge. This is largely B to C, Business to Consumer, but you must use your smart phone to upload videos. Download to your computer and go from there.
Google Analytics. You have all the analysis attached to this platform. There are AdWords offered and you can pay for a campaign. Again, the good news, not too expensive for your return, and you can see what is working and what isn’t.
The big bonus in all of this is that Search Engines love video. For every click, you are moved up the ladder. Text alone doesn’t do this nearly as fast. You are brought above your competition not only on the SEO (Search Engine Optimization) rankings, but also in a professional presence because you are current in delivering content to where the public wants to see it. You are in a trend.
There are more creative strategies with video. For example, if you attach a video direct from your YouTube platform to your emails, you will get a 200-300% click rate . You will have that one to one strong connection with your touch points and inject steroids into your sales.
Or, are you have regular Vlogs going out? Do you have interested engagements where you can send those out to your subscriber base.?
Video is the #1 communicator in today’s social media because it is quick, efficient and taps into the emotional component of human interaction. People are drawn to it and they will remember you.
But video must be done right. First impressions are so important.
I hope this has helped
I have other tips in my Vlogs or Blogs.
If you have any questions, I would be happy to assist.
All the best to you and your business.