Coming back to the departure point that your ad-spend should not be an expense, but an investment from which you expect a return…
In order to determine what your return on your investment [ROI] was, you need to calculate what your ad-spend vs your return was. It’s also useful to do this during the campaign to see what approach works best – develop them and ditch those that aren’t producing the desired results.
There are many client relationship management [CRM] platforms on the market, that allow you to automate the process of lead acquisition, engagement and conversion. However, these are only necessary when you are dealing with high volumes.
Facebook gives very good statistics. I am running a campaign at the moment [27/12/2018] for a free webinar on 17 January 2019. The campaign has been running for two days. I set it to run for 7 days with a total ad-spend of R350. Here are the statistics thus far:
- To date, I have 24 opt-ins costing R8.48 per person and my total ad-spend has been R203.49.
- The best demographic reach has been women aged 25-55.
- I set it to only run on Facebook and not on Instagram of Messenger.
I could tweak this ad campaign if I wanted to reach younger and older women, or if I wanted to reach more men. However, I want people who really want to do this course, and so I’ve deliberately kept the focus fairly broad and let the people make the decision.
I don’t believe this campaign is suited to Instagram and I don’t like pestering people on Messenger, although I would be comfortable contacting those who have already opted in on Messenger to distribute details of the course.
Now, if it was my intention to sell something at the end of this webinar [which I am not], I would take my total sales [say that was R3500] and divide it by my total ad-spend [say that was R350]. That would give me a 10x ROI.
So, let me ask you if you spent R350 and made R3500, would that be an expense or an investment?