We can apply the concept of ROI to most channels used in the Online Marketing strategy.
As you already know, to calculate the ROI we use a basic formula that is applicable to all cases, but taking into account the different nuances that each of these channels has. In this way, we can know which actions or which sections we work on are more profitable and be able to correct those that are not.
ROI on Social Media
This section aims to determine the profitability of the brand's social profiles. To do this, the cost of maintaining each social account (management, publications, employees/agency, etc.) must be measured and the number of transactions generated from the networks must be seen.
In order to calculate it correctly, you must be able to measure the traffic to the website generated by each network and the conversions that these visits make through Google Analytics .
Sometimes you may find that due to the type of business, product armenia telegram data service, social media does not directly generate a monetary transaction or lead. This is because social media can have other functions and help generate Branding for the brand:
Social media is a very good channel of communication with the public.
If done well, they can generate positive branding.
They can generate revenue indirectly. Many users can be positively influenced by social profiles in their conversion.
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Return on Investment in Social Ads
It is interesting to analyze social media management separately from the advertising campaigns that can be carried out on them. The reason is very simple:
When you run a Social Ads campaign, you generally set it up based on meeting an objective (conversion, leads or branding). To do so, you have to make an investment that you must determine before starting the campaign, and there are also costs in materials and management.
Since this is a specific objective, you have to analyze some KPIs that will possibly be different from those you use to measure social networks or other advertising campaigns.
To calculate the ROI on Social Ads campaigns , you must take into account the following:
Investment in advertising as such.
Costs of creating, setting up and managing the campaign, i.e. the time spent by the person in charge.
Revenue generated, if it is a conversion campaign, or the value of the leads obtained. We will see how branding campaigns are calculated later.
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Return on Investment in SEM
For all types of online advertising campaigns you carry out, it is essential that you calculate the return on investment you have obtained. This is very important so that you can correct those that are not profitable and thus stop losing money or invest more in those that are having the best results.
Calculating ROI in this type of campaign is usually easier than in the rest, since the tools themselves offer statistics on objectives met and income obtained. Although the tool already provides you with the necessary data, it would be advisable for you to also review it through Google Analytics.
To calculate ROI in SEM , the data required is very similar to that which must be obtained in Social Ads:
Total investment allocated to the campaign and that has been consumed. (It may be the case that the entire budget is not spent).
Costs of creating, managing and optimizing the campaign itself.
Cost of materials used in advertising such as banners or video pieces.
Revenue earned or value of total leads generated.
** It is advisable to measure economic transactions by first setting up the products in Analytics so that they can be calculated correctly. To calculate Leads, it would be necessary to assign a value to them in Adwords beforehand.