Reference no: EM132342690
Your company has decided to embark on a Facebook Ad Campaign. You know that the ad itself will cost $10,000/month and you plan to run it for 6 months. You want to go beyond the basic cost of $60,000 for the ad and include the time investment that your department and other department will incur. Here are your estimates of time:
Management (you): 15 hours to work with designers to imagine, create, and approve the ad. In addition, you will spend 1 hour/week monitoring the progress of the ad, and an additional 5 hours at the end of the campaign to evaluate the results.
Creative Designers: One designer @ 20 hours to design and edit according to your direction. One designer @ 10 hours to set up the landing page for respondents to fill out information (includes design and edits).
IT: 4 hours for one IT specialist to set the ad up according to your parameters (i.e. set up links to appropriate landing pages, gather email addresses, etc.)
Marketing specialists: One specialist @ 5 hours/week to monitor responses, report on activity.
Salaries:
Management (you): $90,000/year
Creative Designer: $45,000/year
IT Specialist: $50,000/year
Marketing Specialist: $50,000/year
Calculate the time investment based on how much time each employee will spend on the project and apply their salary percentages. Remember that some calculations will be a one-time only expense (i.e. Creative Designer's 20 hours to create the ad), while other expenses will be performed weekly for 6 months (i.e. Marketing Specialist's time).
Now add the time investment to the cost of the ad campaign on Facebook. What is the total cost of the campaign?
You track the campaign results and find that it has produced 12 new customers that each bought products/services totaling $8,500 each. What is the total amount that the campaign brought in?
Now calculate the ROI of this campaign. Remember that the formula for ROI is:
Gain of investment - Cost of Investment
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