According to the latest stats, Facebook has 1.28 billion active users each day, and 68 percent of online American consumers are on this social media platform. As a marketer, Facebook provides you with a powerful way to connect and engage with your audience. Facebook Ads Manager allows marketers to reach highly targeted audiences and boost the visibility of their content. But how can you measure paid social media advertising ROI on Facebook?
Savvy marketers understand how their Facebook ads impact their bottom line to justify spending on campaigns. Understanding your social media advertising ROI will allow you to build a stronger Facebook advertising strategy and benchmark your success on the social media platform.
Believe it or not, calculating your social media advertising ROI on Facebook is simple. You want your Facebook ads to make a positive impact on your sales funnel, right? Then you need to measure what your Facebook ads are driving and how much of a return that you’re getting from these efforts. Knowing this information will help you to determine where to spend your marketing dollars to accomplish your campaign goals, such as earning more qualified leads or new customers.
To calculate your social media advertising ROI, you take the amount you spent and divide it by your return. Let’s say your campaign goal is to earn more leads. To measure the ROI of your campaign, divide the cost of the campaign by the number of new leads. Easy, right?
Social Media Advertising ROI = Total Amount Invested / Total Return
If your Facebook advertising ROI is low, you need to optimize your strategy to justify your investment. Some tweaks that you could make include improving your copy and targeting a more specific audience.
Instead of trying to figure out how to boost your ROI from social media advertising on your own, partner with an experienced marketing agency that can deliver proven results.
Our social media advertising experts at Danesc can improve your social media presence and help you generate more leads by advertising to the right audience using all major paid advertising platforms and social media networks.
Instead of guessing what your ROI is, we can provide you with an accurate ROI by sharing monthly reports that show the results you’re generating.