Simple Two-Campaign ROI Analysis

Basic ROI calculation for two campaigns (Google Ads and Facebook) with ad spend, revenue, and conversions. Demonstrates core ROI formula application and scaling recommendations.

Input

What you provide to the skill

Calculate ROI for two campaigns: Google Ads ($5000 spend, $25000 revenue, 100 conversions) and Facebook ($3000 spend, $12000 revenue, 60 conversions). Team rate $50/hr, no shared costs.

Output

What the skill generates for you

Campaign ROI Analysis - Executive Summary

Portfolio Overview

Total Investment: $8,000/month
- Ad Spend: $8,000 (Google Ads: $5,000, Facebook: $3,000)
- Content: $0
- Team Time: $0 (0 hours @ $50/hr)
- Shared Costs: $0 (no shared costs provided)
Total Revenue: $37,000
Blended ROI: 362.5%
Total Profit: $29,000

Top 3 Performers

1. Google Ads - Best Performer

True ROI: 400%
Investment: $5,000 (Ad: $5,000)
Revenue: $25,000
Profit: $20,000
Cost per Conversion: $50.00
ROAS: 5.0
Profit Margin: 80%
Why it wins: Highest absolute profit, strong conversion rate, excellent 5x return on ad spend

2. Facebook - Good Performance

True ROI: 300%
Investment: $3,000 (Ad: $3,000)
Revenue: $12,000
Profit: $9,000
Cost per Conversion: $50.00
ROAS: 4.0
Profit Margin: 75%
Why it wins: Solid ROI and profitability, good conversion efficiency at same cost per conversion as Google

Bottom 2 Performers

Note: Only 2 campaigns provided - both show positive ROI.

Optimization Recommendations

Immediate Actions (Month 1)

SCALE Google Ads by 100% → Add $5,000/month
- 400% ROI with strong conversion volume (100 conversions)
- Expected: +$20,000/month profit
- Confidence: High (sufficient data with 100 conversions)
SCALE Facebook by 50% → Add $1,500/month
- 300% ROI with moderate conversion volume (60 conversions)
- Expected: +$4,500/month profit
- Confidence: Moderate (60 conversions provides reasonable reliability)

Net Impact

Budget Shift: +$6,500/month (increase total investment)
Projected Profit Increase: +$24,500/month (+84%)
New Blended ROI: 369% (projected)

Channel Performance Summary

Google Ads: 400% ROI, $25,000 revenue (68% of total), $20,000 profit (69% of total)
Facebook: 300% ROI, $12,000 revenue (32% of total), $9,000 profit (31% of total)

Key Insights

Both campaigns show strong positive ROI - good foundation for scaling
Google Ads significantly outperforms on absolute profit despite same $50 cost per conversion
Scale opportunity exists for both campaigns - Google is priority given higher ROI and proven volume
Consider testing additional campaign types or audiences to diversify beyond these two winners
Both campaigns have identical $50 cost per conversion - investigate if this indicates market equilibrium or opportunity for optimization
No content, team time, or shared costs captured - ensure true costs aren’t being understated