Every time a user moves the mouse over a web page, gives a like or performs any action, that “virtual footprint” is stored and serves brands to gather data vk database about their audience and make decisions for business potential .
The influence of data is key to boosting ROI, which is why Mediapost is telling you how data and ROI work.
What is ROI?
ROI is defined as Return On Investment . It measures the financial performance of your brand, in other words, it is the money you have earned thanks to the investment you have made .
To calculate it, a simple formula is used: (income-investment)/investment=ROI . The result is multiplied by 100 to obtain the percentage. To understand it better, let's look at an example:
A Facebook Ads campaign is launched and 200 euros are invested in it. The campaign has generated 800 euros, so the formula is applied as follows: (800-200)/200=3, 3×100=300. The advertising campaign has achieved that, for every euro invested, 3 are earned, obtaining a positive ROI of 300%.
The results serve businesses in making commercial and advertising decisions .
If the ROI is negative, it means that the investment has exceeded the income, i.e. that the costs have produced losses. The most important thing is to identify the problem and reactivate the business ensuring that the results are positive.
What is data?
Big Data is the massive collection of data obtained from users through technological tools and applications and stored in a data storage center.
For example, the fact that you are reading this article creates a “virtual footprint” that translates into data in Big Data. All user actions serve to determine what their profiles are like and, from there, ROI is used to measure whether the profiles have been successfully reached through advertising and commercial campaigns.
