$1,000 of ads, $1,200 in sales
- Revenue attributed to social
- 1200
- Paid ad spend
- 1000
Result Social media ROI: 20%
Net return: $200.00
Total cost: $1,000.00
Staff time cost: $0.00
Revenue per $1 spent: 1.2
Return on ad spend: 1.2 : 1
Cost per conversion: $0.00
- Labour = 0 h × $0.00 = $0.00
- Total cost = $1,000.00 + $0.00 + $0.00 + $0.00 = $1,000.00
- Net return = $1,200.00 − $1,000.00 = $200.00
- ROI = $200.00 ÷ $1,000.00 × 100 = 20%
Only ad spend is counted here, so the $200 surplus gives 20% ROI, and a warning flags that staff time was left out.