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Measuring Social Media ROI in Google Analytics
Google Analytics can provide a great deal of information about your website’s usage and traffic; you harness it properly or not is the question. One such parameter Analytics helps you analyse is ROI.
To define ROI, It is the ratio of your net profit to your costs. It’s typically the most important measurement for an advertiser because it’s based on your specific advertising goals and shows the real effect your advertising efforts have on your business.
A very simple situation as demonstrated by AJ Kumar on Entrepreneur.com states: You use Pay-Per-Click to help drive visitors to your site where they can download a free report. If you know the average lifetime value — or how much profit each customer generates for you over time — of each pay-per-click customer who downloads your report is $100, you should make sure you aren’t spending more than that in “per-click” traffic costs. Otherwise, you can lose money on every new client you attract. On the other hand, if you also know that the lifetime valor of visitors who are coming from search engines is about $200 or more, you might decide either to improve the quality of your pay-per-click campaigns to bring in higher value customers or focus more on page optimization to increase your search traffic.
Now the question is how to measure ROI on Google Analytics:
1. Enable Goals Tracking: After logging into your Analytics account, go to Conversions>Goals. You will need to create a new goal here that can trigger a flag as soon as it is achieved. In the above case let’s say the moment Thank You for Downloading page is reached. There are a few types to be able to do this:
a. URL Destination: The moment a visitor reaches a specific URL this flag is raised.
b. Time: This type allows you to measure how much time visitors spend on your site and to test different change variables to ascertain the one that makes them stay longer.
c. Pages per visit: As simple as it sounds, this goal type will raise the flag once a limit of pages per visit is reached.
d. Events: Any click or navigation driven event that is performed can trigger this flag. This type of goal is to find out how long visitors spend watching your videos, how often they’re sharing your site on social networks, and how often they download PDF reports or other files.
2. Advanced Traffic Segment: These filters can allow you to separate the goal results by the various traffic sources sending visitors to your website.
To do this, navigate back to the “Standard Reporting” dashboard within your Google Analytics account and click on the “Advanced Segments” button just below the home icon. Google offers some standard traffic segments, or you can create your own using the “+New Custom Segment” button in the lower right-hand corner of the Advanced Segments window. You could analyse this for traffic from Google, Social Media or by other websites.