When building effective social media ad campaigns, the biggest question isn’t “How much should I spend?” It’s “For every dollar I spend, how much do I get back?”

In other words, it’s all about return on investment (ROI) — how are ad spending and customer conversion linked? Understanding this makes the amount you spend less important and instead lets you focus on the impact of your social ads. 

In this piece, I’m taking a look at how to measure social media marketing ROI, how to improve it, and offering a look at eight tools to help you streamline the process.

Feel free to jump ahead to:

How to Measure Social Media Marketing ROI

Expert Tips on Measuring Social Media ROI, According to Experts

Social Media ROI Formula

How to Improve Social Media ROI

How Much Should You Spend on Ads?

8 Best Social Media ROI Measurement Tools