The best way to see how the campaign is performing is by learning to calculate your Estimated Return on Ad Spend if you are running a lead generation campaign. If you are running an eCommerce campaign or we are estimating revenue for your campaigns, you can see this info directly in LOCALACT.
For the lead generation campaigns, you can calculate this on your own by using the following formula.
This is an example and NOT pulled from your data. Plug in your own metrics and values to determine your estimated return on ad spend.
This is an example and NOT pulled from your data. Plug in your own metrics and values to determine your estimated return on ad spend.
- You typically convert 20% of all leads to customers
- Your lifetime value of a customer is $500
- This year you have spent $3,000.08 in Google and Facebook spend.
- You have received 155 total results this year.
- If 20% of those results (or leads) turned into 31 (155 x 0.20) customers and your Average Lifetime Value of a customer was $500 (conservative), your estimated revenue from these ads was $15,500 from $3,000 spend.
In this scenario, the local owner received a 5:1 return on ad spend.
Again, please use your own metrics and values. This is just an example to show you how to calculate your return in ad spend. If you have questions about this formula, please contact us at support@localact.com.
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