- Areeb Mirza
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- What’s the Return on investment on Ads & Social Media?
What’s the Return on investment on Ads & Social Media?
A common question: "What will my ROI be on ads and social media?" Let’s break it down for realistic expectations.
Step 1: Ad Spend and Testing
Suppose you’re offering a service priced at $1,500. A recommended ad spend would start at $1,500 (about $50/day). Here’s how we get results:
First Two Weeks: This period is all about testing. We’ll give the algorithm what it needs (targeting, keywords, and quality creative) and let it find your ideal prospects. Let AI do the work, we’ve seen time and again that it can outperform even the best manual targeting setups.
Step 2: Think Long-Term, Not Month-to-Month
One of the biggest mistakes is expecting instant returns and calculating ROI month-to-month. Ads often have a lag time, especially if you're selling higher ticket items that require more decision making. Calculate your ROI over 3-4 months (or even 6 for high-ticket items). Here’s a sample progression:
Month 1: Spend $1,500, and nothing happens.
Month 2: Spend $1,500, still no return.
Month 3: Now you see $6,000 in sales.
Month 4: Another $3,000.
By Month 4, you’re seeing returns that outpace your initial ad spend, with some customers taking time to convert.
Step 3: Monitor and Adjust
Stay flexible with your ads. Test 5-6 ads at once and quickly replace any underperforming ones to maximize efficiency. Adjusting and refining consistently is key to long-term ROI.
The Future: Building Brand Equity Alongside Sales
While ads bring in immediate sales, they also build your following. This audience may not be ready to buy now, but your content keeps them engaged until they are. So while your current ROI is measured in direct sales, you’re also setting up future returns as these followers convert over time.
In essence, when done right, ads don’t just drive sales, they build a lasting customer base and online presence.
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