Before calculating the ROI, however, it must be considered that in the field of web marketing, there are activities for which it is very easy to calculate the ROI, for example online advertising campaigns, which have a more or less immediate economic return, and other activities for which it is more complicate.
For example, a digital PR activity to improve a brand’s reputation could have a very high return on investment, but more long-term and less precisely quantifiable than an advertising activity aimed at direct sales.
Digital advertising
ROAS , an acronym for Return on Advertising Spend , is the finland phone number library metric used to calculate the performance of online advertising campaigns , managed with Google Ads and Facebook Ads. The ROAS formula, useful for calculating how much the campaigns make you earn in relation to each euro invested, is:
ROAS = revenue from advertising campaigns / cost of the campaign
With the spread of the ROAS metric among marketers, Google Ads has introduced bid strategies for campaigns based on ROAS, in order to maximize the return on advertising investment. In detail, Google’s algorithm is based on the definition of a ROAS target and automatically sets bids in order to obtain the highest possible conversion value for the ROAS set by the advertiser. More Details : lifecycle phases in hubspot – less is often more
But be careful not to confuse ROAS with ROI: while the former simply indicates the profit generated by an advertising campaign, minus the cost of the campaign itself, the latter also takes into account other expenses and therefore offers a much more precise idea of the profit.
ROI in Social Media Marketing
Calculating ROI in social media marketing is complex: in this context, ROI is not just how much money social media has made you, or at least this equation is not as straightforward as in other online marketing fields.
The first thing to do is to be clear about the objectives to be achieve, and then measured, through social media. Here are some of the most common: switzerland leads
- Online purchases (both on an e-commerce site and on the Facebook and Instagram marketplace)
- Traffic to pages
- Lead generation through forms
- Newsletter Subscriptions
- Download branded content such as ebooks, white papers, podcasts
- Video views
- Increased brand reputation
- Use of social media for customer care purposes.