In this article, we will look at how indonesia email list to correctly calculate ROI for different advertising platforms and how this data can influence decision-making in marketing strategies.
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%
Where and what data should be taken for calculations?
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, you can calculate advertising revenue.
The next step is to calculate net profit — subtract expenses from revenue.
Calculate ROI using the formula above.