top of page

Campaign ROI Analysis and Budget Optimization Strategy

Conducted a multi-channel ROI analysis for a simulated e-commerce ad campaign using key performance metrics like ROAS, AOV, LTV, CAC, and conversion rates. Used insights to recommend budget reallocation strategies and campaign optimizations.

Project Type

Marketing Analytics | Campaign Budgeting | ROI Optimization

Date

July 2025

ROI_fot_glowna-1.webp

Project Overview

This project involved evaluating the effectiveness of a recent multi-channel ad campaign by calculating and comparing critical performance metrics across Search, Social, Display, and Shopping ads. The goal was to optimize future budget allocation based on channel-level performance to maximize return on investment.

Campaign Data

unnamed (21).png

Step 1: ROAS Calculation

Formula: ROAS = Revenue generated / Ad spend
I computed the ROAS for both the overall campaign and individual channels. 

unnamed (22).png

Step 2: AOV and LTV Calculation

Formula: AOV = Revenue / Number of orders
I determined the AOV for the overall campaign and each channel.

unnamed (23).png

Formula: LTV = AOV x Purchase frequency
I inserted the AOV values into the LTV formula to calculate LTV for each channel.

unnamed (24).png

Step 3: LTV to CAC Ratio Calculation

Formula: LTV to CAC ratio = LTV / CAC
I calculated the LTV to CAC ratio for the overall campaign and each channel.

unnamed (25).png

Step 4: Percentage of New Users Making Purchases

Formula: Percentage of new customers making purchases = (Number of unique new account purchasers / Number of new accounts) x 100
I calculated this percentage for the overall campaign and each channel.

unnamed (26).png

Step 5: Review of ROI Calculations

ROAS Insights:

  • I identified which channels had the highest and lowest ROAS.

  • I made recommendations for reallocating the budget from low to high ROAS channels.

​

AOV Insights:

  • I determined which channels had the highest and lowest AOV.

​

LTV Insights:

  • I analyzed which channels showed the highest and lowest LTV.

​

LTV to CAC Ratios Insights:

  • I identified channels with the highest and lowest LTV to CAC ratios.

  • I checked for any channels below a ratio of 2 or above 3.

  • I made recommendations for budget adjustments based on these ratios.

​

New Customer Purchase Percentages:

  • I identified which channels had the highest and lowest percentages of new customers making purchases.

  • I recommended customizing landing pages for channels with lower conversion rates to increase customer engagement.

Final Recommendations

  • I summarized the insights gained from my calculations.

  • I outlined strategic recommendations for future advertising budget spend based on the calculated metrics, focusing on optimizing channel performance and maximizing ROI.

unnamed (27).png
unnamed (28).png
unnamed (29).png

Key Takeaways

  • Mastered interpreting marketing KPIs to evaluate cross-channel performance

  • Learned how to build a budget optimization framework grounded in data

  • Strengthened ability to translate numeric insights into strategic decisions

  • Gained experience in using metrics like LTV to CAC and ROAS to drive campaign efficiency

bottom of page