Only 30% of marketers can effectively measure social media ROI. That means 70% of us are flying blind when it comes to budget allocation.
Here’s how to fix that:
(FYI I’ll be using terms like “budget” a lot here. I’m an organic social media guy first, so when I say budget I’m generally not talking dollars. I’m usually referring to the time, energy, and effort spent.)
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Why Your Current Budget Allocation Is Probably Wrong
Social networks now account for 17.11% of all online sales, with projections to exceed $1 trillion by 2028.
65% of leaders want direct connections between social campaigns and business goals, but most social media managers can't provide that connection because they're not allocating budget strategically.
The result is wasted time, missed opportunities, and frustrated executives who don't understand why social media "isn't working."
Step 1: The Platform ROI Audit (Week 1)
First, you need to know where your resources are actually working.
Most managers look at engagement rates or reach.
That's not enough anymore. You need to track revenue attribution by platform.
Your Action Items:
Pull your last 6 months of “spend” by platform (Factor in organic not just paid. How much time/energy/effort is being put into each platform?)
Calculate customer acquisition cost for each platform
Measure customer lifetime value by acquisition source
Create a simple spreadsheet: Platform | Spend | CAC | CLV | ROI
Step 2: The 70/20/10 Reallocation Strategy (Week 2-3)
Once you know what's working…
70% - Proven Performance Channels
🍞 & 🧈
Allocate 70% of your budget to platforms and campaigns that consistently deliver your target ROI.
20% - Growth Opportunities
This is where you expand what's working. New audiences, new content formats, etc.
10% - Bold Experimentation
This is your innovation budget. Test emerging platforms, new AI tools, experimental content formats.
Things like:
Threads: 275 million users, growing 3x year-over-year (Meta, 2025)
Don’t just create a Threads profile. Do a 3 month test run where you give it a serious chance to perform.
Social commerce features: 17.11% of online sales now happen through social (Deloitte, 2025)
Step 3: The Executive Communication Plan (Week 4)
Here's where most managers fail…
They do the work but can't communicate the value to leadership.
The Monthly Executive Dashboard
Create a simple dashboard with these 5 metrics:
Revenue Attribution: Direct sales from social media
Customer Acquisition Cost: By platform and campaign type
Customer Lifetime Value: Long-term impact of social-acquired customers
Brand Health Metrics: Share of voice, sentiment analysis
Efficiency Gains: Cost savings from AI tools and automation
The Quarterly Budget Review Presentation
Use this simple structure:
Slide 1: "What We Learned" (ROI by platform)
Slide 2: "What We're Changing" (70/20/10 reallocation)
Slide 3: "Expected Results" (projected ROI improvement)
Slide 4: "Resource Needs" (budget request with justification)
Pro Tip: Always present budget requests in terms of expected revenue return, not just spend. Instead of "We need $5,000 more for TikTok," say "Investing $5,000 in TikTok should generate $25,000 in revenue based on our current 5:1 ROAS."
The Tools That Make This Actually Work
You can't manage what you can't measure.
Here are the tools that make this framework practical:
For Attribution and Analytics:
For AI and Automation:
My personal favorites are
Your Next Steps (This Week)
Today: Pull your platform performance data for the last 6 months
This Week: Complete your Platform ROI Audit using the framework above
Next Week: Create your 70/20/10 reallocation plan
Week 4: Present your findings and budget request to leadership
Remember, 70% of business leaders plan to maintain or increase marketing spend in 2025.
The budget is there—you just need to prove you can use it effectively.
Hope that was helpful!