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How to Increase the ROI of Your Facebook Page

Published: January 17, 2013

Author: Molly Shotwell

Calculating the exact ROI of a Facebook Page can be difficult. A wide variety of opinions and metrics aid marketers in attempting to understand their ROI; however, this wide spectrum creates confusion and dissonance within the industry.
When strictly examining Facebook Insights data, it is safe to assume more engagement will lead to more impressions, and more impressions will lead to more clicks. This increase in clicks should increase bottom-line-impacting sales. While not true for all brands, this generally tends to be the case.
No matter your exact calculation of the metrics, you might be asking, “How do I increase the ROI of my Facebook page?”
In order to increase the ROI of your Facebook page, we need to work backwards. Clicks are dependent on impressions, while impressions are dependent on engagement. We need to focus our attention to improving engagement.
First, a little context on a couple of terms you may have heard: EdgeRank and Organic Reach.
At the very heart of the ROI equation is an algorithm called EdgeRank. Facebook’s news feed algorithm is made up several components; the component that regulates Facebook pages is the EdgeRank algorithm. Understanding this algorithm enables us to start the process of maximizing all three metrics we’re targeting: engagement, impressions, and clicks.
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EdgeRank is a complex and elaborate algorithm. In its most simplistic form, we can conclude that engagement increases the likelihood of a piece of content gaining more impressions. We can assume that the more impressions we get, we’ll maintain a similar proportion of clicks when people see the content. Therefore, we’ll see more total clicks when seeing more total impressions.
Now for Organic Reach. As Facebook defines it, Organic Reach is the number of unique people, fans or non-fans, who saw this post in their news feed or ticker or on your page. There are two ways of improving this number: increasing the amount of fans you have, or increasing the engagement of your content. Acquiring new fans can be a costly endeavor; to maximize your ROI at similar spend levels, increasing the engagement of your content will have the greatest impact.
Facebook doesn’t make it easy. The news feed is continuously becoming a more and more crowded space, which makes Organic Reach tougher to acquire. The pages that continue to drive above-average engagement will be able to take advantage of this situation.

So how do I improve the engagement of my content?

Now that you know the best strategy for increasing your ROI is to increase your engagement, because this is the one element that gives you the most opportunity for control and a very low cost, let’s talk tactics.
First and foremost, great content creates great engagement. It all starts with the content being presented. However, there are several ways to enhance that foundation’s effects:
– Publish relevant photos
– Create calls to action (encourage audience to engage)
– Incentivize engagement (without violating Facebook’s TOS)
– Publish at optimal times of day
– Avoid negative feedback
– Use demographic based targeting to catch the fan’s attention
These tips, in conjunction with good content, should further increase the engagement of your content. An increase in engagement will ultimately lead to an increase in impressions. As we know, that should result in a higher total amount of clicks — and hopefully sales.
So, in summary, how can you increase the ROI of your Facebook page? By publishing interesting content, at the optimal times of the day, structured in enticing formats to increase the likelihood of engagement.

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