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Calculate the return on investment (ROI) of this social media campaign: 

Calculate the return on investment (ROI) of this social media campaign: 

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the return on investment (ROI) of this social media campaign: 
Social media return on investment (ROI) is a measurement of the value from social media marketing. Essentially, what is the return for the investments made in social media? • ROI by revenue formula: profit/total investment x 100. Please calculate the ROI of social media campaign for a pair of Ray Ban sunglasses by presenting them with this case: • You are a social media marketer responsible for creating a social media campaign for a pair of Ray Ban sunglasses. • The goal of your social campaign is to drive sales for the sunglasses. • With every single social post, you include a trackable call-to-action link to your website where users could purchase the sunglasses. • You outsourced all of the professional photographs of the sunglasses, creation of the social media graphics and videos to a company for S5,000. • You also spent $3,000 on social media ads directed at the target market. • Your campaign ran for one month, and during that time you only worked on the campaign, making a salary of $5,000. • The social media management tool that your company pays for costs $1,000 a month. • By the end of the campaign, you were able to pull a report from your company website of all the sunglasses sold from customers who clicked on the trackable link from social media. • The total revenue for sunglasses purchases from the social media campaign was $50,000, of which $30,000 was profit after subtracting the costs to make the sunglasses.
Transcribed Image Text:Social media return on investment (ROI) is a measurement of the value from social media marketing. Essentially, what is the return for the investments made in social media? • ROI by revenue formula: profit/total investment x 100. Please calculate the ROI of social media campaign for a pair of Ray Ban sunglasses by presenting them with this case: • You are a social media marketer responsible for creating a social media campaign for a pair of Ray Ban sunglasses. • The goal of your social campaign is to drive sales for the sunglasses. • With every single social post, you include a trackable call-to-action link to your website where users could purchase the sunglasses. • You outsourced all of the professional photographs of the sunglasses, creation of the social media graphics and videos to a company for S5,000. • You also spent $3,000 on social media ads directed at the target market. • Your campaign ran for one month, and during that time you only worked on the campaign, making a salary of $5,000. • The social media management tool that your company pays for costs $1,000 a month. • By the end of the campaign, you were able to pull a report from your company website of all the sunglasses sold from customers who clicked on the trackable link from social media. • The total revenue for sunglasses purchases from the social media campaign was $50,000, of which $30,000 was profit after subtracting the costs to make the sunglasses.
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