Social Media Marketing ROI – It Just Isn’t Happening {Infographic}

Social Media Marketing

Social Media Marketing ROI

According to a recent survey by Manta,

“Social media marketing is an evolving arena for small business owners and many seem unsure about whether or not to invest marketing dollars”.

  • Only half of respondents said that they are willing to spend money on social media marketing.
  • And of those who do spend, most (47 percent) commit less than $100 per month, while 40 percent spend between $100 and $1,000.
  • Fifty-nine percent (59%) of respondents acknowledged no ROI (return on investment), with Facebook generating the most return.
  • The goal for nearly 40 percent of small business owners using social media is to acquire and engage new customers, while the majority of the rest use it to drive awareness and market their business (17 percent) or to get leads and referrals (15 percent).

See Infographic below.

Here is what these study findings tell me.  Small business owners are not changing their spots.  They’re still trying to market their businesses on a shoe string.  No matter how inexpensive the media is, they will always short-circuit the results.

Sounds harsh?  I don’t think so and here’s why.

1.  It has been my long experience that most small business owners are always hesitant to spend any money on advertising – online or offline.

2.  Those that do spend on advertising – big and small business owners – couldn’t or won’t calculate ROI for the following reasons:

  • Don’t know how to calculate ROI
  • Don’t care
  • Think it is too much trouble
  • Don’t understand how to use the ROI information to guide their efforts in the future

3.  Many THINK their advertising efforts are generating results, but they are just hoping. If you asked them to show you the numbers, they couldn’t.  They would say things like:

“Well, we’ve seen a lot more activity.” 


“It just feels like there is more interest”. 

4.  Business owners are always focusing on “acquiring new customers”.  The really sad part is once they acquire a ‘new customer’, they tend to ignore them like they do all of the other existing customers.

5.  These same business owners – who dabble with Facebook but not make a commitment –ignore a relatively free and often more effective marketing tool, email.  Go figure.

The ROI calculation is simple.  You spend $100 in advertising. This effort generated 15 email subscribers, or 245 Facebook likes or $1000 in sales.

# of subscribers/# of Likes/$ of sales divided by $100 = ROI

Once you know the ROI of your ads and other marketing efforts, you can being to answer questions such as:
  • Was it worth it?
  • How much do these new customers represent over the next year, next two years in sales?
  • Will another offer do better?

Calculate your ROI.  Do it.  Use it.

Social Media Marketing ROI - Infographic

Your Turn

Which are you?

Are you one of the business owners that are just dabbling with social media?

Are you hoping for results instead of measuring results so you can do better?

Why aren’t you truly committed to marketing your business?

Do you not know how?  Are you afraid?  Do you really think your business will market itself?

Come on!  Tell me!  What is stopping you?

Sheila Hibbard

Sheila Hibbard takes the fluff, hype and confusion out of marketing and social media. She provides small business owners with straight forward, no nonsense marketing guidance and techniques that produce results based on her 35 plus years in advertising, communications, research, strategic planning and social media. Author of Marketing Online Made Simple - WHO.

More Posts - Website - Twitter - LinkedIn - Google Plus

Then join thousands of other Marketing Action Takers!

Receive Free weekly updates, tips and techniques to grow your business.  Fill in the information below and look for Marketing Action in your inbox.

Posted in Social Media Marketing and tagged , , , .


  1. Pingback: For Idea And Idea On Social Media Marketing You Required, Have a look at This Short article | howeegzahkahgw

  2. Pingback: 3 signs your small business should forego social media, and what to do instead

  3. Pingback: 3 signs your small business should forego social media, and what to do instead – Better Marketing

  4. Pingback: 3 signs your small business should forego social media, and what to do instead -

  5. Pingback: 3 signs your small business should forego social media, and what to do instead – Niche Marketing News

  6. Pingback: 3 signs your small business should forego social media, and what to do instead – Sales Marketing News

    • Yes, there are small businesses that do “spend time” on social media…but often the business owners aren’t strategic about their implementation. It isn’t about the quantity of posts…it is about the targeting and the quality. Their social media efforts need to be planned PRIOR to implementation: goals, objectives, audience, messaging, frequency and the all important measurement. It is learn what is or is not working and tweak than it is to just spray messages into the air hoping something will stick. Hope you agree.

  7. Hi Sheila,
    Thanks so much for this article. I found it very informative. By chance do you have a 2016 version of this article? If not, do you think these findings are still relevant?

    • Lydia, many thanks for reading and for leaving a comment.

      No, I don’t have updated figures, but based upon my experience, the chances are the figures probably haven’t changed all that much. More importantly is that many small business owners are not establishing social media goals prior to spending their dollars and are not measuring the results. It isn’t that difficult. They just have to want to know the information.

      Hope to see you again on the blog.


Leave a Reply

Your email address will not be published. Required fields are marked *