When launching advertising in social networks, every marketer wants to be sure that investments in public placements bring real profit. Let’s figure out in simple words how to check the effectiveness of advertising campaigns and make sure that your sowing in social networks really Knowing how your social pays off.
What does “advertising ROI” mean?
Advertising pays off when the profit from it exceeds the costs of posting in public pages and creating materials. The higher the difference, the more successful your campaign.
Why is it important to understand the ROI of advertising?
Knowing how your social media advertising is paying off allows you to:
- Avoid inefficient budget spending.
- Find the most effective channels (for example, postings on Telegram or VKontakte).
- Improve strategy based on real results.
How to measure advertising return on investment: ROI and ROMI
Two important indicators will help to evaluate the Knowing how your social effectiveness of placements:
- ROI (Return on Investment) is the total return on all investments in the campaign.
- ROMI (Return on Marketing Investment) is a return solely on marketing expenses.
ROI and ROMI Calculation Formulas
For calculation use the following formulas:
- ROI = (Ad Revenue – Total Costs) ÷ Total Costs × 100%
- ROMI = (Advertising Revenue – Marketing Expense) ÷ Marketing Expense × 100%
What is included in marketing expenses?
These are all expenses that are buy phone number list directly related to product promotion:
- Cost of advertising placement in social networks.
- Costs of sowing in publics.
- Creation and production of advertising materials.
- Payment for the work of specialists (designers, copywriters, targetologists, etc.).
How to practically measure the return on advertising
First, you need a social media traffic source from which you can generate leads.
In this case, the BidFox service can help , which has how can your company take advantage of the metaverse? more than 20,000 publics in three social networks, and to accurately measure the results of placements in Telegram, VKontakte or Odnoklassniki, use links with UTM tags.
BidFox service allows you to easily integrate such links into advertising creatives to facilitate the analysis of received traffic and leads.
Practical tips for ROI and ROMI analytics
- Always use UTM tags to track conversions.
- Analyze each channel separately australia cell numbers (Telegram, VKontakte, Odnoklassniki).
- Regularly check the effectiveness of formats and test different types of placements.
- Compare ROI and ROMI for each channel to optimize your budget.