What is the biggest challenge in social media marketing. SEMPO has the answer. They lauched a report called "Challenges for Managing Social Media Marketing". Based on the report,  measuring the Return on Investment is the biggest challenge. I truly understand the challenge because no one wants to invest money without any returns.

As you can see the result above, measuring the ROI ranks first out of 8 challenges. Followed by Integration and measurement with other online/offline marketing channels, etc.

So, if there is any solution to calculate the Return on Investment in social media marketing? The answer is "Yes".

Choosing which tools to use to measure ROI is totally depends on companies' social media marketing goals. But my company we use Google Anayltics.

In order to calculate the Return on Investment in social media marketing, you need to calculate the expenses involved. For my company, I hired a full time staff to manage it. Let say, his salary is $2000 monthly, which means is $24000 per year. If there are other expenses, for example subscribing tools to manage social media, buying software to track your social media plan, etc. Please include everything. That's your total expenses.

For sales and profits, all you have to do is use Google Analytics, set your goals in value. Track how many people from Facebook, Twitter, Linked, etc buy from you. Calculate your sales minus your expenses divided by your expenses, then you get your ROI. But bear in mind that, if you just started your social media marketing campaign, don't expect you can get return within short period because it needs time to build your profile, your brand, to communicate and to build relatiosnhip.

If you have any questions, just comment on this article, we will answer you! :)