Calculation of Facebook Marketing Effectiveness in Terms of ROI

Abstract

This chapter demonstrates how to assess the performance of organic and sponsored activities on Facebook using the data available in Facebook Ads Manager, Facebook Page Insights, and Google Analytics. The main aim of the proposed ROI calculation model is to connect common social media marketing objectives with the analytical information available. The main emphasis is put on the technical aspect of ad performance assessment. The authors explain how the Facebook attribution system and post-impression algorithm work, describe the relation between advertising goals and metrics displayed as achieved campaign results, and demonstrate how to derive ROI indexes from different Facebook conversions. The chapter also includes a practical example how to calculate current and future value of ongoing ads.