Understanding Social Media ROI: A Practical Guide from Co-founder Jem

Social media has evolved into a powerful engine for attracting and nurturing qualified leads, making it an essential component of any modern marketing strategy. But how do you truly know if all that effort is translating into valuable business results? If you’re a business owner or marketer, this guide is built to help you navigate that process. With total social media ad spend projected to reach a staggering $276.7 billion this year, measuring your return on investment is critical for smart budgeting and growth.

Before you turn to spreadsheets and calculators, let’s start with what matters most. Social media ROI is about attracting, educating, and qualifying the right audience, not closing sales directly. It’s a broader picture of brand engagement, community-building, and real lead generation outcomes.

Why Social Media ROI Is More Than Just Revenue

Many people think that having one clear number that shows whether social media is “worth it.” But ROI (Return on Investment) captures not just money earned versus money spent, but also it also reflects the quality of audience interest, leads generated, and the depth of brand relationships built.

In 2025, the most effective marketers recognise that social media ROI isn’t about sales, it’s about connections that become conversations and conversations that become leads.

Social media usually isn’t the last step before purchase; it’s the warm-up act, guiding people along the customer journey. It turns strangers into curious followers, and followers into buyers, sometimes over weeks or months. Even when the impact is subtle, be it through a memorable post, a thoughtful DM, or a story that sparks conversation, these moments contribute to your bottom line in ways spreadsheets alone can’t capture.

For example, a B2B consultancy might not see direct leads from every LinkedIn post, but those posts build credibility so that, when decision-makers are ready, your business is on top of mind.

The Common Frustrations and Why They Happen

Ever thought to yourself…

• “No direct sales come from social.”
• “We can’t measure what matters.”
• “Results are just too slow.”
• “Too much effort, too little reward.”
• “I want sales, not vanity metrics!”

These struggles are normal, and they come from treating social media as a sales channel instead of what it really is: A relationship and lead generation channel. When you measure social in isolation, it can seem disconnected from actual business outcomes. Instead, integrating social into a wider marketing system, and setting realistic expectations makes the data more meaningful and actionable.

Visualising the Customer Journey: The Human Funnel

Imagine your customer’s path as a funnel:

• Awareness: People discover your brand
• Consideration: They get interested and explore offerings
• Lead Generation: They take action, buying, booking, or signing up

But real journeys aren’t straight lines. One person might notice a video in passing, check out your profile weeks later, and eventually purchase after seeing a testimonial. The funnel helps you decide what to measure at each stage, making sense of the messy reality.

For example, use impressions and reach at the awareness stage, profile visits and downloads for consideration, and UTM-tracked website visits and contact forms for conversion. Picking the right metric for each stage creates a focused, purposeful dashboard rather than an intimidating mess of numbers.

What to Measure at Each Stage

Don’t try to track everything, focus on signals that align with your goals. Here’s a practical breakdown:

Top of Funnel (Awareness):

• Follower growth (shows your reach is expanding)
• Total reach and impressions (more discovery = more potential buyers)
• Video views and average view duration (signals what catches attention)

If few people see your content, conversions won’t happen regardless of quality. Prioritise discovery in early stages.

Middle of Funnel (Consideration):

• Profile visits and engagement rate (shows curiosity turning into interest)
• Lead magnet downloads and newsletter signups (moves people toward active consideration)
• Genuine DMs and replies (signals individuals moving closer to a decision)

These metrics reveal when casual followers begin considering your solutions.

Bottom of Funnel (Lead Generation):

• Website sessions from social, tracked via UTMs (proves social actually drives traffic)
• Purchase clicks, promo-code redemptions, add-to-cart events
• Contact forms completed, booking requests, high-quality DM enquiries

These numbers are closest to revenue, showing the business impact of your social presence.

Tools to Simplify Measurement

You only need a few reliable tools, used consistently:

• Platform analytics (Instagram Insights, LinkedIn Analytics, TikTok Analytics) is best for reach and engagement basics.
• Metricool, is a user-friendly tool to create cross-platform reports and track campaigns over time.
• Google Analytics with UTMs: connects your posts to actual website visits and conversions.
• Bitly for easy, trackable links in posts.
• ManyChat can help automate DMs and tracks responses for Instagram.
• FloDesk/Mailchimp will trace new subscribers back to a social campaign.

Pick what you’ll actually use, set up a monthly reporting habit, and keep your data tidy and consistent.

What Data Can’t Capture: And Why That’s Okay

Some essential brand value simply isn’t measurable:

• Perception: how people feel about your brand after interacting online
• Offline Decisions: a post may inspire an in‑person visit not tracked digitally
• Memorability: positive brand recall, weeks or months later

Quantitative metrics tell only part of the story. Collect qualitative insights as well, talks with customers, reviews, feedback, and anecdotes. This combination gives a more balanced ROI view.

Realistic Timelines: What to Expect by Business Type

Measurement isn’t just about knowing what happened, it’s about setting expectations and staying patient:

• B2B (services, long sales cycles): 6–12 months before consistent results; build trust with decision-makers and give educational or thought leadership value.
• E‑commerce/Direct Retail: 3–6 months for traction; focus on product videos, promo code tracking, and user content for rapid feedback loops.
• Local B2C services: A middle ground; align marketing with local reputation and community relationships.

Work in 3‑month plans. Set clear goals, review metrics monthly, and adjust based on momentum.

Two Examples for Funnels You Can Use

Funnel A: B2B LinkedIn Prospecting

• Awareness: Share weekly thought leadership posts and short commentary to show expertise and build credibility.
• Consideration: Offer a downloadable guide (email‑gated, UTM‑tagged), giving real value and a reason for decision-makers to provide contact information.
• Lead Generation: Encourage discovery calls or website visits via calendar links and tracked UTMs. These are strong engagement signals that show qualified interest and help fill your lead pipeline.

Funnel B: E‑commerce Video-First Funnel

• Awareness: Post engaging short-form videos on TikTok and Reels showcasing products.
• Consideration: Use Bitly or UTM links to drive viewers directly to product pages; answer FAQs to smooth purchase decisions.
• Conversion: Track purchases through promo codes and e‑commerce analytics, and traffic.

Two Brief Case Studies: Evidence That Measurement Works

Avani Hotels

We ran a six-month campaign for Avani blending cross-platform video content and influencer partnerships. Through consistent use of UTMs and clear goals, they saw major results:

• Millions of video views
• Approximately 250,000 tracked website visits from social platforms

Their strategy worked because we tagged every post for measurement and aligned videos with a simple, focused funnel. Instead of just hoping for engagement, we set a direction and tracked the outcome.

Expectancy

Expectancy targeted midwives with tightly focused content and actionable calls to action. Over four months, their approach led to:

• 47% increase in website traffic
• 400% increase in course enquiries

We succeeded by adjusting content quickly based on enquiry signals and keeping messaging hyper-specific to their audience. Result: rapid, measurable growth when tracking started from the beginning.

Building Your Social Media ROI Framework

Follow these practical steps to go from uncertainty to a repeatable system:

1. Define your primary objective. Are you focused on awareness or leads?
2. Map the customer journey. Decide which content types align with awareness, consideration, and conversion.
3. Assign metrics to each stage. One or two core KPIs keep things focused.
4. Set up tracking. Use UTMs for all links; install pixels if you plan ads.
5. Choose practical tools. Platform analytics, Metricool, Google Analytics, and Bitly set a solid foundation.
6. Measure consistently. Review the same report monthly.
7. Gather qualitative evidence. Ask customers directly how they found you; log sales team stories.
8. Refine and reallocate. Invest more where data shows clear momentum.

Stick with this for three months and slowly patterns become reliable. Focus on the signals that matter and repeat what works. Those steady improvements build real, measurable growth you can confidently share.

Think in Funnels, Not Single Posts

The secret to social media ROI isn’t a one-off post, it’s the momentum created by guiding people through awareness, consideration, and action, supported by consistent measurement and patient review. Define what success looks like, track the right signals at each stage, and adapt your process as your audience evolves.

Remember, some returns, like brand reputation, memorability, and word-of-mouth, won’t show up in graphs and spreadsheets, but they drive growth nonetheless. Combine hard numbers with real stories to see the full picture.

Meet Jem Bahaijoub

Jem Bahaijoub brings over 20 years of experience in marketing, brand strategy, and digital communications across diverse sectors globally, from tech startups and music labels to purpose-driven organisations. As the Co-Founder of Make Me Social and founder of her own consultancy, Jem blends deep industry insight with a heartfelt belief in the power of genuine connection. She has helped build and grow international marketing campaigns, trained global brands in strategic communication, and mentored countless creators in finding their authentic voice.

Let’s get talking

If you need a free consultation, drop us a message at 0800 654 6505 or hello@makemesocial.co.uk. We’re here to help your brand unlock its full visibility and growth potential.