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vrijdag, juni 30, 2006

How can I track my online advertising results?

There are three standard ways to measure the effectiveness of your online advertising spend:

1. Conversion Rate
Conversion Rate measures how many visits to your site "convert" to a sale or "action."
Formula: # of Sales from a given advertising vehicle / # of visits to your site from that advertising vehicle = Conversion Rate

2. Return on Advertising Spend (ROAS)
Return on Advertising Spend (ROAS) tells you how much revenue you generated per dollar you spent on a given advertising vehicle.
Formula: Revenue generated from the sales from a given advertising vehicle / Amount spent on that advertising vehicle = ROAS.

3. Return on Investment (ROI)
Return on Investment (ROI) tells you how much profit you generated per dollar you spent on a given advertising vehicle.
Formula: Profit generated from the sales from a given advertising vehicle / Amount spent on that advertising vehicle = ROI

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