Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Keep at Lease Three Month's Worth of Living Expenses in a Savings Account or High-Yield Money Market Account

Keep at Lease Three Month's Worth of Living Expenses in a Savings Account or High-Yield Money Market Account - Because we need to rely on our emergency funds during time...

read entire tip

Recently Added
Other Great Sites

Return On Advertising Investment

It is crucial to understand the success and value driven by advertising efforts. Return calculations of advertising campaigns are critical. Business leaders justify campaign costs by calculating returns that are accomplished by a campaign; however, it can be very complex to calculate these returns accurately.

To begin calculating returns on an advertising campaign you will need:

Cost of goods sold (COGS)

Unit number sold through the campaign time frame

Campaign revenue

Advertising campaign total cost

These will help with the following steps to establish a beginning point for evaluating a simplified process to assist with calculating advertising returns:

Although these instructions can be moderately challenging you will need to how many units were sold during the campaign period that can be directly attributed to the campaign. You should use product or service codes, promotion codes or coupons to correlate units that were sold for a direct advertising effort.

Now you will need to multiply these by the cost of goods sold. COGS will be the total cost of promotion, distribution, and production of the individual unit for sale. You need to determine the cost of man hours, fixed and variable expenses and material cost. This total will be divided by the number of the units you produced, giving you the COGS per unit. Then you will need to multiply this total by the units sold for the promotional effort or advertising you are measuring. You now have the COGS for your campaign.

To obtain the total cost of the advertising effort, you will add the total cost of the campaign to the COGS for the advertising campaign.

Now multiply the units sold directly linked to the campaign by revenue per unit, now subtract this from COGS for the campaign. You now have the return or gross profit of the advertising campaign.

You have now successfully calculated your return on an advertising investment. To save time when calculating advertising returns you should calculate the COGS for the unit and update your figures as needed or on a regular basis.

Make sure that you have accurate data when doing all of your calculations or your calculations will reflect poor management decisions. Make sure you calculate with critical honesty. If you are creative in the accounting of necessary sums it will result in return amounts that do not reflect the value of the campaign accurately.

Discuss It!

girlsdoporn said:

I require this article to complete my try in the school, and it has same subject with your article.||| said:

Keep up the great work and I'm looking forward to the new and improved

comparaison friteuse said:

I am having a gigantic time today ! I am fundamentally befuddled to see this first rate article today.

http://celebrityimages.org/celebrity/2777975/1684385 said:

It's truly agreeably worth for me.I was really gotten with the bit of points of interest you have here. Colossal thumbs up for making such great web diary page !

triumph tr6 car covers said:

COGS will be the total cost of promotion, distribution, and production of the individual unit for sale.

followers instagram | likes on instagram said:

Buy Instagram Followers, then be free as our specialists play out each administration with abilities and information

Cash Advance said:

Previously, in the event that you needed an advance, you would need to visit an advance office and give documentation so the budgetary organization could decide if they should credit cash to you.

How to Increase Bone Strength in Women said:

You have done a great job. I will definitely dig it and personally recommend to my friends. I am confident they will be benefited from this site.

majestic seo trust flow said:

âSometimes I feel like if you just watch things, just sit still and let the world exist in front of you - sometimes I swear that just for a second time freezes and the world pauses in its tilt. Just for a second. And if you somehow found a way to live in that second, then you would live forever.â

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Zero-coupon Bond

Definition: A bond that doesn't pay interest but is sold at a deep discount.  The investor profits from the bond going up in value (kind of like ...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com