Critical Analysis on Measuring Social Media Performance: Applicability of the ROI

Document Type : Research Paper


DBA, Faculty of Business Administration, Beirut Arab University, Beirut, Lebanon


In light with the substantial importance of social media, this research paper highlights and examines the use of Return on Investment (ROI) in evaluating the performance of social media for businesses by understanding how to gauge the ROI of their social media efforts. ROI provides a quantitative measure of the return a company gets from the money and resources it invests in social media campaigns. However, measuring ROI for social media can be challenging and might need to be supplemented with other metrics as it requires tracking and attributing revenue generated from social media campaigns accurately. The paper commences with a comprehensive literature review of social media's definitions, importance, and objectives, followed by a specific emphasis on ROI in measuring social media performance. The study emphasizes that understanding how to measure ROI can help companies improve their marketing strategies in promoting products and services. The paper concludes with a proposed hypothesis statement addressing key questions and providing a roadmap for further research on this topic.