$1,000 of ads, 12 orders of $100
- Content production
- 0
- Instagram ad spend
- 1000
- Creator or influencer fee
- 0
- Orders from Instagram
- 12
- Average order value
- 100
- Measure return as
- Revenue
Result Instagram ROI: 20%
Revenue from Instagram: $1,200.00
Net return after costs: $200.00
ROAS (revenue ÷ cost): 1.2
Cost per order: 83.33
Orders needed to break even: 10
- Total cost = 0 + 1000 + 0 = 1000
- Revenue = 12 orders × 100 = 1200
- ROI = (1200 − 1000) ÷ 1000 × 100 = 20%
- ROAS = 1200 ÷ 1000 = 1.2
$1,200 of sales against $1,000 of spend leaves $200 net, a 20% ROI and a ROAS of 1.2.