Defining Social Media Attribution for Business

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Social media attribution is the process of identifying revenue-generating channels, campaigns, and posts. Google Analytics comes to your aid here. However, not all attribution models offered by this service are suitable for social media.

Defining Social Media Attribution for Business

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Assuming that the first encounter with your buy bitcoin email list brand was through watching a video on Facebook, the user's next steps look like this:

When a user visits your brand page, they subscribe to it to receive regular news.

After a couple of days, your page is updated with an article, which can only be read in full on your website, where the link in the post leads.

The user goes to your website and subscribes to your newsletter to stay up to date with new products and current events.

A week later, the user receives an email with a code, which, when entered on your website, he receives a discount on the product that caught his attention on the social network page.

Google Analytics offers last-click attribution, but it doesn't take into account the influence of social networks. In this case, multi-touch attribution is more effective, with which you can track all the user's channels that led them to a purchase.

For social networks, the following Google Analytics models are more interesting:

Linear model attribution. Conversion is distributed evenly across all channels. This model is relevant when the user encounters advertising throughout the entire path to conversion.

Position-Based Attribution: In this case, the last and first interactions are considered equally valuable. The rest is divided between other points. This model is relevant for situations where the importance of the first encounter and the final conversion is paramount.

Attribution "Time Decline". The most valuable are the last interactions. The effectiveness of this model can only be assessed for one-off or short-term actions.

Step 3. Calculating CPA in social networks
CPA (cost per acquisition) is an advertising model in which the advertiser pays only for certain user actions: clicks, subscriptions, purchases, registrations.

When you run a Twitter campaign and use it to grow your following, you can see how many of those followers became customers (an acquisition). If you know the investment you spent on the post, you can calculate the cost of acquisition by dividing the cost of the post by the number of people who ended up clicking on your link and signing up.

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Social media advertising costs also include the time and human resources spent on generating and posting content.

Step 4. Calculating the ROI of social networks
So, you have decided on the place of social networks in the sales funnel and the appropriate attribution model. Now you can start calculating ROI (return on investment) using the following formula:

ROI = (income minus investment)*100/investment

Social media revenue is calculated using an attribution model. If we assume that the revenue from one conversion action is $120, of which 30% belongs to social networks (this is what the attribution model suggests), then the ROI will be $40. Of course, this indicator is not always accurate, but it gives an idea of ​​the level of expenses.