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June 1, 2025Introduction to ROI (Return on Investment) What Is ROI, Really? ROI, or Return on Investment, is just a fancy way of asking, Am I getting my money’s worth? If you spend $100 on ads and make $300 in sales because of them, your ROI is solid. It’s not rocket science—it’s simply making sure what you spend brings you more back.
Why Should You Care About ROI in Digital Marketing? You wouldn’t throw $50 into the wind and hope it comes back. So why would you spend on Facebook, Instagram, or Google Ads without checking if they work? ROI shows you what’s worth your time and money—and what’s not.
The Simple ROI Formula You Can Actually Understand
Here's a quick breakdown:
- Money You Made = Revenue or return generated from your ads
- Money You Spent = Cost of running the ads
- ROI = The percentage of profit made from your investment
Example:
- If you made $500 from a Facebook ad campaign and spent $100 to run it:
- ROI = ($500 - $100) ÷ $100 = $400 ÷ $100 = 4.0 = 400% ROI
- That means for every $1 you spent, you made $4 in return — a 400% return on investment.
Facebook Ads — Still the King for Older Demographics
Types of Facebook Ads That Work
- Local Awareness Ads
- Engagement and Boosted Posts
- Lead Ads for Email Collection
- Understanding Facebook Ad Insights
**Check your ad results right from your phone. It’ll tell you how many people saw, clicked, and bought from your ad—without needing a tech team.
Instagram Ads — More Than Just Pretty Pictures
Why Instagram Is Great for Product-Based Businesses
Selling physical products? Instagram is where you show them off. People love visuals—especially when they’re clean, bright, and real.
- Types of Instagram Ads to Explore
- Stories vs. Feed Ads
- Video Ads for Deeper Engagement
Simple Tips to Make Instagram Ads Work for You
- Use real photos
- Add captions
- Keep the text short and sweet
- Include a clear call to action like “Shop Now.”
Google Ads—For People Searching to Buy
Search vs. Display vs. YouTube Ads
- Search Ads: Appear when people Google stuff
- Display Ads: Show up on other websites
- YouTube Ads: Play before or during videos
Why Keywords Matter (and How to Pick Them)
Think like your customer. If you sell handmade candles, use terms like “buy candles online” or “eco-friendly candles.” Google's free Keyword Planner helps you find what works.
Tools to Help You Track ROI (No Tech Degree Needed)
- Facebook Ads Manager Basics - See who clicked, who bought, and what it cost—all in one dashboard.
- Google Analytics in Plain English - Track where visitors came from and what they did on your site. It’s free and gold for insights.
- Instagram Insights: What Those Numbers Mean More than just likes—see reach, saves, and link clicks.
Final Thoughts:
Digital marketing can feel like trying to learn a new language. Algorithms, ad sets, click-through rates... it's a lot. But here's the truth: ROI isn't just for tech-savvy 20-somethings. It's for anyone who wants to make sure their money is doing what it's supposed to — working for them.
Whether you're a seasoned business owner, a solo entrepreneur, or have a side hustle, understanding your return on investment is the key to running smarter campaigns. Why throw money at ads if you don’t know what you’re getting back?
As always, please set up a free appointment with me if you need some guidance.
By for now, Nico : )