ROI shows how much profit you make from each dollar (or other currency) invested. It’s a basic metric for evaluating the effectiveness of any investment, from business campaigns to personal finance.
Formula:
ROI = (Revenue from Ads − Ad Spend) ÷ Ad Spend × 100%
Example:
You spent $1,000 on ads and $100 on proxies, accounts, and cards (total $1,100). You earned $2,200 →
ROI = ((2,200 − 1,100) ÷ 1,100) × 100% = 100%
Why calculate ROI:
- Understand which campaigns actually generate profit.
- Compare different campaigns or traffic sources to pick the most profitable.
- Decide whether to scale or pause a campaign.
Strategies to improve ROI:
- Test and optimize campaign elements: audiences, segments, creatives, and targeting.
- Optimize budget allocation: increase spend on profitable campaigns, cut spend on underperforming ones.
- Use automated rules to manage bids and maximize efficiency.
