Promotion and advancement in social networks have already been completed and have yielded results. How can you understand whether the advertising costs are justified? The most correct way to do this is to use the ROAS indicator. It stands for Return On Ad Spend, which means “return on advertising expenses”. It can be used to judge how profitable the investments in promotion are and whether the campaign is effective as a whole. The higher this number, the better the advertising pays for itself.
what is it and how to determine it
If you only analyze impressions, traffic, and special database conversion, you will get unreliable data because these are quantitative indicators that do not indicate the presence of problems. But with the help of the ROAS indicator, you can:
- determine the effectiveness of each tool;
- estimate the income from marketing methods;
- distribute and change advertising costs across all channels;
- optimize expenses in such a way as to obtain maximum profit with minimum investment.
To determine ROAS, you need to know how much budget you spent on advertising and how much money you made from customers who came through it (i.e., the total conversion value).
To find out the return on advertising costs, you need to divide the total conversion value by the promotion costs.
Let’s look at an example of course advertising. $5,000 was spent on promotion in social networks. In two weeks, 100 people purchased access to the courses, each of them paid $200. We determine the total conversion value: 100 × 200 = $20,000. Next, we divide $20,000 by $5,000 and get a ROAS of 4, or 400%. Based on this, the investment in advertising paid off by 400% in 14 days. And every dollar spent on advertising brought in $4.
Information for calculating payback can be taken from analytics services: Facebook, Google Analytics, etc.
Evaluation of SMM campaign results
If you have decided to order social media promotion from specialists, you will be able to learn about the results of the work performed using the reports provided by the contractor. But if you are doing the promotion yourself, you should regularly conduct an SMM audit to assess the effectiveness of the work. The criteria depend on the initial goals for which you entered social networks.
When forming KPIs in SMM, they usually rely on the following indicators:
- number of subscribers and the dynamics of its change (growth/decline);
- user engagement – likes, reposts, comments, mentions;
- the quality of traffic coming to the site from social networks;
- the number of users who performed the target action (usually expressed as a percentage).
The list is very general, you can clarify it with an SMM specialist, who will tell you about the goals and indicators in much more detail, and tick-tak a cikin wechat, tura imel zuwa lissafin also form specific KPIs for your situation. After all, no one needs millions of subscribers who will never become clients.
Common mistakes of SMM specialists
Social networks are the most suitable platform for establishing contact with potential buyers. Users can easily receive information here, and businesses can easily maintain communication with them. However, many specialists make mistakes that significantly reduce the effectiveness of SMM marketing.
They can be conditionally divided into five categories:
- In content. This includes the lack of an aqb directory SMM strategy, misunderstanding of the interests of the target audience, poor quality content, spelling and punctuation errors.
- In targeting. The most common mistake is creating and running ads through a personal advertising account, not through Business Manager. Also, many SMM specialists promote a post on Instagram with the “Promote” button under the publication. And, of course, they chase the number of subscribers, doing mass following and participating in giveaways.
- In communication. Many specialists do not know how to properly neutralize negativity and turn dissatisfied users into loyal customers. Another very common mistake is deleting bad comments and reviews or ignoring them.
- In time management. The effectiveness of SMM marketing is reduced by too frequent publications, cross-posting, and also publishing posts during periods of low user activity.
- In analytics. Failure to measure the effectiveness of your work is another common mistake. It is important to be able to use analytics tools: understand how to determine ER, check conversion, connect analytics data, etc.
Of course, every new project has its own nuances. But the mistakes we described are made by SMM specialists most often and lead to the absence of the desired results, and sometimes to the loss of clients.
