Return on Investment (ROI) is a ratio used in the stock market to measure the financial benefit of an asset relative to the amount invested. It allows you to quantify, in economic terms, whether an advertising campaign has met its objectives. It is a percentage calculation that includes both investment and profit to obtain the return on investment ratio.
You should also keep in mind that ROI always goes hand in hand with Key Performance Indicators (KPIs), which help to measure and quantify the performance of actions based on goals and objectives. These indicators change depending on what you want to achieve through your digital strategy.
KPIs that will help you
Impressions: We can see how many times your brand is appearing in users\' timelines.
Reach: Facebook Insights provides data on the number of people who have seen a specific post, as well as the users who have seen the post via computer, tablet, or mobile device.
Interactions: The most common interactions are the total number of comments and Likes on Facebook, the number of mentions and retweets on Twitter, the number of repins on Pinterest, etc.
Engagement: This can be measured in several ways. The most common is to add the number of comments and likes, multiplied by the number of followers gained.
Increase your community and the interaction of your active users
• We can measure the traffic we drive to a specific website thanks to tracking that allows us to see where our visits come from.
• Brand mentions with an active community. Measure and monitor both positive and negative mentions and their quantity to know where to improve.
• You can measure the number of visits, as well as those who have visited your website only once.
• The conversion rate will help us calculate the number of visits received by a website or Facebook page, along with the number of leads obtained.
• Cost Per Click (CPC). This indicates the amount we pay for each click a user makes on a specific ad.
• Click-Through Rate (CTR). This measures the percentage of clicks and impressions achieved. The calculation would be something like this: Number of clicks / Number of impressions x 100
The ultimate goal of all these metrics or KPIs is ROI analysis. Keep in mind that the higher the ROI, the more profitable our campaigns will be. The important thing is to monitor every action and then analyze it according to your objectives.
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