Your ROI can be calculated as revenue from sales, minus advertising costs, all divided by the cost of advertising. To express ROI as a percentage, you multiply the result of this formula by 100.
ROI Calculation Formula
((Sales – Cost) / Cost) x 100 = ROI
How much you pay for advertising on a famous newspaper, magazine or yellow pages?
Lets say you pay AED 1000 and the result is you get 100 calls or leads.
10 of those leads become customers, and each customer provides an average revenue of AED 120.
This means the value of each lead is AED 12 (AED 1200 revenue/100 leads)
ROI = 20% (AED 1200 revenue – AED 1000 ad spent)/AED 1000 advertising cost) x 100.
Here’s the formula used in this example: (Revenue – Costs)/Costs) x 100 = ROI %
If your ROI is negative that means your ad spend is higher than your revenue.
The question is, are you tracking your ROI on advertising?
We at Leads Dubai place your ads on Google network and give you reporting on your ROI to increase your profitability.
We will show you the actual cost you are paying per lead / sale.
All you have to do is set up an estimated value-per-lead just so you can attach some kind of monetary value for each lead generated by advertising on Google.
Now comes the best news!
Your users can call you directly while clicking on your ads on their Mobiles. This way your sales manager gets a call directly from a prospective customer looking to buy from you. Checkout our post on Mobile Advertising in Dubai
This is a post about Advertising in Dubai & Return on Investment – ROI
With Social Media, there is rise of micro moments by which you can influence and reach your customers in moments that matters.
Mukesh Pandey is a Digital Marketing Strategist. He is Google Adwords Certified and strongly believes that Internet will enable us to speed up innovation and make life easier for everyone. He also founded Leads Dubai which is a Lead Generation Company in Dubai.