Maximizing ROI in Social Media Advertising: Emerging Platforms and Tactics

Consistently monitoring performance helps prevent negative impacts and leverage new opportunities presented by algorithm updates.

Maximizing ROI in Social Media Advertising: Emerging Platforms and Tactics
Katie Metz // Adriana Lacy Consulting

With billions of active social media users worldwide, social platforms have become a fundamental part of marketing for businesses. Brands use social media to interact with customers to increase sales and drive organic traffic to their websites.

But from time to time, social media platforms update their algorithms, which disrupts the social media marketing efforts of many brands. The changes determine how content is shared on social channels and what shows up on users' feeds, which ultimately affects visibility and organic reach.

What is ROI in Social Media?

ROI in social media refers to the evaluation of profits and effectiveness of social media marketing in relation to the resources assigned to them. It measures the profitability of social media campaigns, which can include social media marketing activities such as creating content, community management, and advertising campaigns. 

Marketers can use the formula below to calculate the ROI in social media advertising:

(Return from Marketing Campaign – Investment Made) / Investment Made X 100 = Social Media ROI

Essentially, this is the net value of social media activities, obtained by deducting the expenses of social campaigns from the total earnings generated by the campaigns, divided by the expenses, and then multiplying by 100%.

Analyzing ROI helps to provide many valuable insights into the overall impact of social media marketing on business investments and objectives.

How do AI algorithm Changes Affect Organic Reach and ROI?

Understanding AI algorithmic changes and being flexible in your social media course of action is important for optimizing organic reach and growing your ROI in social media advertising amidst the ever-changing AI algorithms. Consistently monitoring performance helps prevent negative impacts and leverage new opportunities presented by algorithm updates.

Some challenges posed by AI algorithm changes that marketers need to be aware of include:

  • Uncertainty and Lack of Transparency: Social media algorithms change often without much explanation leaving most of the people stranded. This creates significant challenges for people trying to improve their content creation performance. Without clear communication of these changes, it can be difficult to discern approaches for optimizing content.
  • Organic Reach: Reaching your target audience organically helps you grow and expand your marketing campaigns on social media platforms. In case an algorithm update prioritizes posts from your friends and families then posts with brand content might have reduced organic reach. On the other hand, if the algorithm favors video content then posts that have included videos will likely receive increased visibility and engagement.
  • Ad Performance: Changes in AI algorithms may alter how well your social media advertising campaigns perform. For instance, if the algorithm update prefers video ads, it might outperform other ad formats, increasing return on investments in ads that have embedded video content.

How Businesses Can Adapt to the Challenges of Decreased Organic Reach Due to Changes in Search Algorithms Influenced by AI

For businesses to adapt to the decreased organic reach due to changes in search algorithms brought about by AI, they need to be flexible, and strategic in their agenda in social media marketing. This helps them maintain visibility, drive meaningful results, and maximize ROI. 

Several strategies that businesses can use to keep up with the changes in search algorithms that occur due to AI include:

Content Optimization

Be more competitive when creating your content and optimize it to help improve organic reach and engagement regardless of algorithm changes. You should create relevant and high-quality content that resonates with your target audience. 

Utilize Paid Advertising

Leveraging paid advertising options and promoted posts is a helpful strategy for businesses looking to increase visibility and reach on social media platforms. Paid ads can be customizable, allowing businesses to target specific interests and behaviors to improve ROI.

Community Engagement

Engaging the community in your business can help maintain organic reach and promote word-of-mouth on social media. Community engagement fosters interactions with the audience allowing them to share their opinions, experiences, and preferences through messages, comments, and posts hence encouraging user-generated content.

Data Analysis and Optimization

Analyzing key metrics like conversation rates and engagement rates helps businesses identify patterns, trends, and opportunities for optimization. This allows most businesses to make informed choices on where to allocate resources and adjust content strategy for improved ROI in social media advertising.

Diversification of Platforms

Depending on one social platform may be very risky because a small algorithm change in your preferred social media can affect your entire social media marketing strategy. Businesses should never put all their eggs in one basket, but should instead decrease their risk by adopting several strategies on different social media platforms and channels, hence broadening their reach to a more extensive audience.

Engage Audience

Engage your audience by starting a conversation with them, reply to their comments, and address inquiries. This interaction helps influence organic reach by fostering loyalty and confidence in your brand. 

Use Relevant Keywords throughout Your Content

Using relevant keywords in your content enhances visibility on search engine results pages helping boost its ranking. This helps increase exposure and drive organic traffic to your platform and website.

As businesses maneuver the challenge of decreasing organic reach influenced by changes in search algorithms driven by AI, they need to embrace engagement with communities, paid advertising, and leveraging data analytics to improve ROI in social media advertising.

Businesses should also continuously refine their strategy and stay tuned to the evolving AI algorithm trends, to ensure sustained engagement, visibility, and success in the dynamic realm of social media marketing.

Great! You’ve successfully signed up.

Welcome back! You've successfully signed in.

You've successfully subscribed to Media Minds by Adriana Lacy Consulting.

Success! Check your email for magic link to sign-in.

Success! Your billing info has been updated.

Your billing was not updated.