Evaluation of advertising channel effectiveness

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For every advertiser, the effectiveness of the advertising channels used is an important indicator.

To calculate this indicator, you need to calculate the following values: expenses for each advertising channel, the amount of profit received directly during the campaign, as well as after automotive mailing list it, calculate ROI (Return On Investment). It is determined by the formula:

ROI = (income – cost) / investment amount * 100%

With the help of the Roistat service (an end-to-end analytics system), you can find out the return on investment ratio that you have invested in advertising. If your investment, say, was 20,000 rubles, and the return is 40,000, then this is a very good result. With 20,000 invested and 20,000 rubles returned, your earnings will be zero, as well as the ROI percentage. But in this case, you are not working at a loss, which is also important.

You should understand that by increasing the effectiveness of each advertising channel, you will receive a higher ROI. The higher the ROI, the higher the return on your investment.

Let's sum it up. Those advertising channels that have an ROI that exceeds advertising costs will be the most effective for you. To have a good profit, you must first of all thoroughly study your target audience and be able to quickly respond to changes in its needs, maintain high quality advertising and, of course, monitor the performance indicators of each channel.

3 Problems of Measuring the Effectiveness of Advertising Channels
The topic of correct evaluation of advertising effectiveness is relevant for marketers. Performance indicators need to be analyzed and trends tracked. Let's list three problems that prevent the correct evaluation of an advertising campaign.

The customer decision cycle is too long
For example, you have decided on a channel, launched an advertising campaign in test mode, and spent 70,000 rubles on it. Then you start measuring the effectiveness. The first problem arises: the money has run out, and there are still no clients. Accordingly, sales have not been made, and you have not yet received a profit. This happens because the client's decision-making cycle is too long. Perhaps applications have already been received, but there are no completed transactions, as well as income, yet. Such situations are common in the B2B segment, as well as when selling expensive or complex goods. You should stop broadcasting advertising: with such a transaction cycle, you should not count on a quick profit.