From the course: Introduction to Social Media Strategy

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Evaluating social media marketing ROI

Evaluating social media marketing ROI

From the course: Introduction to Social Media Strategy

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Evaluating social media marketing ROI

- In the early 1900s, John Wanamaker famously said, "Half the money I spend on advertising is wasted. The trouble is, I don't know which half." Of course, advertising looked quite different in those days. Nowadays, with digital marketing tools, you can better target and measure your advertising so you won't waste 50% of your budget. In this video, I'll highlight what you need to consider to make sure you understand the return on your advertising investment. When measuring return on investment or ROI in social media marketing, people will look at a return on Ad Spend. This is also referred to as ROAS. The formula is simple, ROAS equals sales divided by the total costs of the ads. And of course, you would like your ROAS to be as high as possible. For instance, if you have a website where you sell backpacks and all the traveling gear, and in the moment of January you spend $5,000 on ads that lead to sales of goods for a…

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