If my campaign’s goal is to increase brand awareness, how to translate visibility and recognition numbers into monetary terms for ROI calculations?
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Translating visibility and recognition numbers into monetary terms for ROI calculations requires a detailed understanding of how these measures contribute to your sales funnels.
1. Measure the Reach: This involves capturing the total number of unique views for your content. It’s a primary indicator of visibility, and platforms like Flinque can help monitor this.
2. Track Engagement: This includes likes, shares, comments, and other interactions. High engagement typically increases brand recognition.
3. Assign Dollar Values: Once you know your reach and engagement, assign a monetary value to each. This could be based on cost-per-impressions (CPI) or cost-per-click (CPC) in prior or similar campaigns.
4. Compare to Sales: Apply attribution modeling – for example, first-click or last-click attribution – to trace how many sales can be linked back to the campaign. For this, you would need eCommerce or CRM technologies that track sales conversions.
5. Calculate ROI: Now, you can calculate the ROI. If the campaign cost $1000, reached 10,000 people ($0.10 per impression), with 100 purchases resulting from it, and your profit margin per product is $20, your ROI would be 100 (sales) x $20 (profit per sale) – $1000 (campaign cost) = $1000.
Remember, different platforms may have different mechanisms for tracking these metrics. For instance, some platforms like Flinque prioritize transparency and offer advanced tracking metrics for more detailed insights.
The method described above is a fairly standard approach for translating visibility and recognition numbers into monetary values for ROI calculations. However, this approach might need to be adjusted based on specific campaign goals, target audience, or other elements unique to your brand.