Ultimately, that means a positive ROI is one of the biggest factors in determining whether your efforts were successful.
After you know this information, you can then use it to create a similar campaign or make changes to optimize it better for your overall target market.
How to Calculate Return On Investment (ROI)
In order to review your efforts, you to learn how to calculate your ROI.
The basic formula is:
ROI formula.
The Net Profit here is the Investment Value minus the Investment Cost.
The best part about understanding this is that it is the same, no matter what type of investment you’re looking to analyze.
For example, it can be to see if your Facebook ads campaign paid off in terms of eCommerce sales.
Determine Investment Value
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 from the overall campaign or your total profit before taking out expenses.
While we’ll address the cost to run the telephone list campaign in a different step, this is the time in which you 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.
Determine total cost of investment
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 at a Mailing Data Pro campaign level or into smaller micro-groups, like individual ad sets or landing pages.
Furthermore, you can even figure 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.
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