As we step into 2024, social media remains a powerful tool for businesses aiming to connect with their audience, build their brand, and fuel growth.
But how can you know if your social media marketing is really making a difference? That’s where return on investment (ROI) comes in.
In this blog, we’ll share key social media ROI stats that can help you improve your social media efforts and make the most of your marketing budget.
What is Social Media ROI?
In simple terms, social media ROI is exactly what it sounds like—the return you get from your investment in social media marketing and ads. It compares the results you achieve to the money you spend. Depending on your goals, you can measure this using different metrics.
For example, if your aim is to boost brand awareness, you might focus on metrics like new followers, impressions, audience growth, or social shares. These are quite common, but you can also track things like likes, comments, or sales.
The most straightforward way, however, is to look at how much revenue your campaigns bring in.
How To Calculate Social Media ROI?
We know that numbers can be tricky, so we understand where you’re coming from. Luckily, measuring social media ROI is pretty simple. You can use this simple formula with revenue in mind:
Social media ROI = (Total Revenue – Total Investment) / Total Investment
Here, “total revenue” is the money you made from your campaigns, while “total investment” is what you spent (including things like resources, labor costs, and cost per click).
When you calculate this, a negative result means you spent more than you earned, which isn’t great. On the other hand, a positive result indicates that you made a profit.
Let’s understand this through an example. Suppose you spent $300 on social media ads last month and earned $900. Using our formula:
ROI=(900−300)/300
=600/300
=2.0
Your social media advertising ROI is 2.0, meaning you earned $2 for every dollar you spent. If you want to express this as a percentage, you can use this formula:
ROI=(Total Revenue−Total Investment)/Total Investment × 100
Top Social Media ROI Stats
Understanding how your social media campaigns perform can assist you to make smarter decisions and get better results. Here are the top social media ROI stats every marketer should know to enhance their strategies and maximize their returns.
1. In 2024, it’s expected that there will be 5.17 billion social media users worldwide. This shows just how huge your potential audience can be!
2. Social commerce is becoming a key player in the e-commerce world. In 2023, sales made through social networks made up an estimated 18.5% of all online sales.
3. Looking ahead to 2024, it’s predicted that global revenues from social media platforms will reach nearly $700 billion, which is about a 23% increase compared to the previous year.
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4. Video content continues to attract audiences on social media. By 2025, it’s predicted that video will make up 82% of all consumer internet traffic.
5. Influencer marketing is very powerful for your business. Posts created with micro-influencers see engagement rates that are 60% higher than those from larger influencers. Working with micro-influencers can be more budget-friendly and yield a better ROI.
6. User-generated content (UGC, in short) is an effective way to promote authenticity and build trust. In fact, 90% of customers reported that UGC has a greater impact on their buying decisions than traditional advertising.
7. Understanding your audience is essential for any marketing strategy, which is why social listening is important. Currently, 61% of businesses use social listening, and more than 82% of marketers consider it a key part of their social media planning.
8. HubSpot’s 2024 Social Media Trends Report reveals that YouTube offers marketers the highest return on investment (ROI), with Facebook and Instagram close behind. TikTok is also gaining ground, while platforms like X (formerly Twitter) and LinkedIn have less than 10% of marketers supporting them.
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9. The future is AI! Chatbots can speed up the buying process, answer customer questions, and also offer personalized suggestions—all of which can boost customer satisfaction and ROI. Recent studies suggest that AI will be used in 95% of customer interactions by 2025.
10. Ad blockers are becoming a growing challenge for marketers. In 2022, the use of ad blockers increased by 27%.
11. In social media marketing, personalization can lead to better results. Companies that offer personalized experiences are likely to see 80% of their customers making repeat purchases.
12. Understanding return on ad spend (ROAS) is crucial to measuring the success of your social media campaigns. A solid 95.8% of marketers believe Facebook provides the highest return on investment among all social platforms.
YouTube ROI Statistics
YouTube has become a major player for marketers wanting to boost their return on investment (ROI). With its huge audience and captivating video content, more and more businesses are using YouTube to raise brand awareness, connect with customers, and even drive sales.
Let’s take a look at some important social media ROI stats that show how effective YouTube can be in delivering great results for marketing efforts.
13. The Digital 2024 Global Overview Report found that YouTube has the potential to reach 2.49 billion users with ads. That’s about half of the 5.04 billion people using social media worldwide, making YouTube the second most popular platform out there.
14. More and more people are subscribing to YouTube’s Music and Premium services. Currently, there are 100 million paying subscribers on the platform. This growing subscriber base can significantly boost your marketing efforts and ROI!
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15. Brands using a full-funnel strategy (combining awareness and action ad formats) see a 10% higher ROI on YouTube than those using only one type. The luxury skincare brand Sulwhasoo achieved a 91% decrease in CPA and a 13.8X increase in conversion rate by implementing a full-funnel strategy.
16. Brands can increase their average weekly ad frequency on YouTube from one to three exposures without diminishing effectiveness. Peloton identified an opportunity to improve ROI by 15% by optimizing reach after adjusting ad frequency.
17. Targeting the right audience significantly impacts ROI. Using insights about interests and behaviors helps brands reach more potential customers. Oreo segmented its audience using insights and created personalized content for four groups, resulting in a 100% year-over-year improvement in YouTube ROI.
18. Customizing YouTube ads to match how people like to consume content can significantly boost your ROI. Ads designed for vertical viewing (like those on YouTube Shorts) generate 10% to 20% more conversions for every dollar spent compared to traditional landscape ads.
Facebook ROI Statistics
Facebook has proven to be a game-changer for businesses looking to boost their ROI through social media. With its vast audience and powerful advertising features, it consistently delivers impressive results for marketers across various industries.
Here are some key social media ROI stats that show just how impactful Facebook is for your business:
19. Facebook is a big player when it comes to online traffic. It’s the third most visited website in the world, right behind Google and YouTube, placing it ahead of other popular platforms like Twitter and Instagram.
20. In 2023, Facebook’s ad revenue reached $135 billion, up from $116 billion the previous year. This steady growth shows just how valuable Facebook ads are for businesses looking to increase their return on investment (ROI).
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21. According to a WordStream study, Facebook ads average a 2.50% click-through rate (CTR) across all industries for lead generation ads. Some industries perform even better: sectors like arts & entertainment, real estate, physicians & surgeons, and sports & recreation see CTRs of 3% or more, while the travel industry hits over 6%.
22. The same study found that the average CPC for Facebook traffic ads is just $0.83, while for lead generation ads, it’s $1.92. It means that Facebook ads can deliver high engagement at a relatively low cost.
23. Facebook also offers strong conversion rates, averaging about 8.25% for ads on the platform. However, industries like arts & entertainment, dental services, industrial & commercial services, and real estate experience even higher conversion rates, making Facebook a great place for turning clicks into customers.
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24. Thanks to the platform’s high conversion rates and low CPC, Facebook marketing delivers impressive returns. In fact, Facebook generates the highest ROI among all social media platforms, tied with Instagram at 29%.
25. According to HubSpot, Facebook ranks second in audience targeting, only trailing YouTube by a slim 1%. It means Facebook allows marketers to effectively reach their ideal audience and maximize ROI.
Instagram ROI Statistics
If you’re looking to boost your brand’s visibility and connect with your audience in a fun way, Instagram is where it’s at! With its eye-catching visuals and amazing features like Stories and Reels, this platform gives businesses plenty of opportunities to engage and drive sales.
Let’s check out some social media ROI stats and see how Instagram delivers impressive ROI for brands.
26. Recent reports show that Instagram has 2 billion monthly active users. While it may not match Facebook’s over 3 billion, that’s still a massive audience for brands. With the right strategies to attract more followers, these users could become loyal fans of your business.
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27. According to the Kepios Instagram statistics report, 62.7% of Instagram users follow or research brands and products on the app. Meaning customers are actively looking to buy or learn more about products right on Instagram.
28. A study by Socialinsider found that Instagram Reels have an average reach rate of 30.81%, which is double the reach of other content formats. Reels also generate twice as many impressions compared to other types of posts.
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29. Instagram gives the highest return on investment (ROI) for influencer marketing. According to a HubSpot survey, 30% of marketers say they get the best ROI from influencer marketing on this platform. Additionally, 32% find it the easiest platform for collaborating with influencers.
30. More and more people are turning to Instagram for entertainment. In fact, looking for funny or entertaining content is the second most popular activity, with 64.8% of users engaging in it. So to boost your ROI on this platform, you must satisfy and address what customers want.
Twitter/X ROI Statistics
Twitter has proven to be another strong platform for marketers looking to boost their return on investment. Brands that use Twitter can achieve significant sales increases and high engagement levels.
Let’s look at some key social media ROI stats that highlight Twitter’s effectiveness in driving returns:
31. According to Keywords Everywhere, Twitter.com receives around 227.84 million visitors each month through organic searches and ranks for about 17.22 million keywords. This traffic is important for brands because more visitors mean more chances for engagement and sales. The result? Higher returns on marketing investments!
32. For every dollar spent on Twitter Ads, brands earn about $2.70 back, giving an ROI that’s nearly 40% higher than what they get from other advertising platforms.
33. Twitter’s Promoted Video ads are up to 20% more effective at boosting sales compared to other ad types. For instance, Pringles in the UK saw a return on their Promoted Video that was three times higher than their average ROI from other media.
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34. Campaigns that focus on products bring in a short-term sales ROI of around $2, while brand-focused ads only make about 30 cents.
35. Brands can see better returns by increasing their Twitter ad budgets by a factor of five or more. Plus, running longer campaigns tends to work better than just doing short, one-time ads.
36. To get the best results, it’s smart to aim for a mix of 70% product-focused ads and 30% brand-focused ads. This balance helps keep your brand strong over time.
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TikTok ROI Statistics
TikTok has totally changed the game and has become an essential digital platform for brands. Its enthusiastic user base, quick growth, and high engagement are promising signs for those who get in early.
Here are some compelling social media ROI stats that show how effective TikTok is in driving returns for brands:
37. As of 2024, TikTok has more than 1.5 billion monthly active users, with predictions to reach 2.2 billion by 2027. Users engage by spending approximately 4.43 billion minutes on the platform daily, with 30% shopping through TikTok Shop.
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38. A significant 56% of marketers plan to increase their investment in TikTok next year, the highest among all social media platforms.
39. According to HubSpot, 67% of marketers aim to boost spending on short-form video in the upcoming year, with 71% reporting it delivers the highest ROI among content formats.
40. A September 2023 survey revealed that 24% of marketers consider TikTok to have the third highest ROI among social media platforms.
41. Among small business owners, 51% of those advertising on TikTok report a positive return on investment, while 45% break even on their ad spend.
42. Over half of marketers (50.1%) view TikTok as the most profitable platform for influencer marketing with short-form video, surpassing Instagram Reels and YouTube Shorts.
Conclusion
As social platforms keep changing, it’s super important to stay updated on these latest social media ROI stats and trends to make the most of your social media efforts.
While these statistics provide valuable insights, remember that your success in social media marketing also depends on your brand’s authenticity, the impact of your message, and the strong connections you share and form with your audience.
ROI goes beyond just revenue—it encompasses the relationships you build and the trust you establish with your users.
