Calculating Your Ad Spend ROI

Everyone wants to talk about algorithms. Facebook's, Instagram's, Google's…they're seemingly impossible to beat. You can spend endless hours creating engaging posts and growing your audience, but likes on your page mean less and less as most of your fans aren't seeing what you post.

An easy and effective way to combat this problem is by paying for ad space. Paid social ads have become increasingly important, but as more people start entering the space the more competitive and expensive they become. If you're going to spend the time, money and energy creating ads, you need to make sure your bang is worth your buck.

The best way to do this is by accurately calculating your ad spend ROI. A quick Google search will provide you with tons of useful ROI calculators (we recommend HubSpot's), but in order to get accurate numbers, you will need to actively track and utilize the following metrics:


How much money have you allocated for this advertisement? Depending on the competition in your industry, the cost per click (CPC) can vary from cents to multiple dollars. If you want your ad to reach the right people, you need to have a healthy budget.

Conversion Rates

What percentage of sessions on your website convert into leads? Of these leads, how many convert to customers? If these numbers are low, you may want to consider updating your sales funnel and nurturing the leads you already have before searching for more.

Lifetime Value

How much is your average customer worth to you? How much does a new customer spend? What your ad is promoting and who your ad is targeting will be greatly influenced by the potential your audience provides.

Ads can be complicated - so let us handle them for you! Contact Brand Yourself and get the ball rolling!