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How to measure the return on digital advertising

Posted: Sun Dec 22, 2024 9:31 am
by hasinam2206
The success of an advertising campaign is measured not only by the number of clicks or views, but also by how effectively the spent investments are returned in the form of profit. This is where ROI (Return on Investment) comes in handy — an indicator that allows you to assess how much each invested hryvnia or dollar brings in income.

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.

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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.