The first step in discovering the ROI of a particular advertising campaign for your business is by figuring out the investment value.

This is essentially what your business earned from the overall campaign or your total profit before taking out expenses.

While we’ll address the cost to run the Don’t Be Afraid campaign in a different step, this is the time in which you need to tally up the sales made that come directly from running the campaign itself.

By using this total in the overall ROI calculation formula, you’ll be able to tell whether you have a positive or negative return.

Let’s use an example.

Susie runs a Facebook ad campaign for her local bakery that offers customers a special discount if they mention a special code word.

She makes $1,000 in sales from the advertising push. In this instance, her overall investment value would be $1,000.

7 Types of Personas

This is the portion of the formula where we look at what it cost you to run the campaign in the first place.

Generally, this should be pretty easy to figure out, as it is directly tied to your ad spend.

You can choose to break down ad spend telephone list at a campaign level or into smaller micro-groups, like individual ad sets or landing pages.

Furthermore, you can even figure Don’t Be Afraid out ad spend on A/B testing by landing pages and other smaller elements.

The only thing you want to ensure is that your profit correlates to the exact investment cost you’re using in the formula.

If this isn’t something you can break down, then you might need to calculate your total cost as a different grouping.

Apply the overall ROI formula

Phone Number List

Now we’re at the step where you actually apply the overall ROI formula.

Take the investment value and subtract the overall investment cost. Then you’ll take that number and divide it by your investment cost to get a percentage.

Ready to wrap up the Mailing Lead example of Susie and her bakery?

$1,000 investment value – $250 Facebook ad cost = $750

$750 / $250 Facebook ad cost = 300%

In this case, Susie made an excellent profit off her marketing campaign… a whopping three times her investment!

While this is a basic example of what is a good ROI, sometimes the result isn’t always as profound.

Leave a Reply

Your email address will not be published. Required fields are marked *