Return on investment (ROI)

In our class last week we talked about return on investment (ROI). ROI is a tool which measures, if your marketing-investment has payed off or if you better should stop your campaign. In our case we talked about the ROI for Social Media Marketing.


To measure your ROI for Social Media Marketing, you have to analyize several data:

• Click-Trough-Rate (CTR)
• Followers/likes/eyeball/retweets/reports
• Mentions
• Analytics
• Search engine (where is my company in google-ranking?)

To determine generally your ROI, you have to calculate with following formula:

• (gain for investment - cost of investment) / cost of investment 

 To determine my own ROI for my self-marketing campagin, I will at first count my

• followers and retweets on Twitter
• friends on facebook
• followers of my blog
• pageviews of my blog
• number of responds to my blog-posts

It wouldn´t make sence yet to analyze my campaign on search engine, because my "buisness" is still too small, to play a important role on google.