A comprehensive indicator for evaluating social media marketing efficiency through combined engagement and financial metrics

Анотація

The evaluation of Social Media Marketing (SMM) campaigns has long been divided between engagement metrics – such as likes, comments, and shares and financial metrics, including Return on Investment (ROI) and Cost per Engage-ment (CPE). This paper introduces a novel indicator, termed ER_Combined, which integrates both engagement and financial performance metrics into a unified framework. The ER_Combined model allows for the customizable weighting of Engagement Rate (ER) and Engagement Rate by Reach (ERR) and incorporates adjustable benchmarks for Max ROI and Max CPE. This adaptability makes it suitable for diverse marketing goals, enabling marketers to strike a balance between engagement and profitability. The formula’s practical utility is validated through real-world case studies, which demonstrate its ability to improve SMM campaign assessment and strategic decision-making. This research fills a critical gap by providing a holistic solution for evaluating SMM efficiency.