Where and what data should be taken for calculations?
Posted: Thu Jan 23, 2025 7:23 am
What is ROI?
ROI (Return on Investment) is a key indicator of the effectiveness of any marketing campaign, allowing you to understand how much your advertising investment has paid off. In simpler terms, it is an indicator of how much money you earned for each hryvnia/dollar invested.
This indicator is calculated using the formula:
ROI = (Net Return on Investment / Total Investment Cost) x 100%
The two main advertising platforms are Meta and Google .
To begin with, you need to calculate the costs of advertising activities: advertising budget, team of performers (if you are not launching the advertising yourself), etc.
Then, using Facebook Pixel or Google Ads Conversion Tracking and Google Analytics, kuwait consumer email list you can calculate advertising revenue.
The next step is to calculate net profit — subtract expenses from revenue.
Calculate ROI using the formula above.
Meta advertising cabinet
Meta advertising cabinet
Read also: Solving problems with the advertising account: from ad blocking to errors with the payment profile
Example of calculating ROI using Meta data
Let's assume that the cost of the agency's services for setting up targeted advertising costs UAH 30,000.
ROI = (145 043 - 30 000 - 65 996.28) / (30 000 + 65 996.28) х 100% = 51.09%
The campaign is unprofitable, so we are turning it off!
ROI (Return on Investment) is a key indicator of the effectiveness of any marketing campaign, allowing you to understand how much your advertising investment has paid off. In simpler terms, it is an indicator of how much money you earned for each hryvnia/dollar invested.
This indicator is calculated using the formula:
ROI = (Net Return on Investment / Total Investment Cost) x 100%
The two main advertising platforms are Meta and Google .
To begin with, you need to calculate the costs of advertising activities: advertising budget, team of performers (if you are not launching the advertising yourself), etc.
Then, using Facebook Pixel or Google Ads Conversion Tracking and Google Analytics, kuwait consumer email list you can calculate advertising revenue.
The next step is to calculate net profit — subtract expenses from revenue.
Calculate ROI using the formula above.
Meta advertising cabinet
Meta advertising cabinet
Read also: Solving problems with the advertising account: from ad blocking to errors with the payment profile
Example of calculating ROI using Meta data
Let's assume that the cost of the agency's services for setting up targeted advertising costs UAH 30,000.
ROI = (145 043 - 30 000 - 65 996.28) / (30 000 + 65 996.28) х 100% = 51.09%
The campaign is unprofitable, so we are turning it off!