What is the return on investment (ROI) of our Facebook Ads?

To calculate the Return on Investment (ROI) of your Facebook Ads, you'll need to follow these steps:

### 1. Gather Your Data

You will need the following pieces of information:
- **Revenue generated from Facebook Ads**: Total sales or revenue attributed to your Facebook advertising campaigns.
- **Cost of Facebook Ads**: Total amount spent on Facebook Ads during the campaign period.

### 2. Calculate ROI

Use the ROI formula:
\[ \text{ROI} = \frac{\text{Net Profit}}{\text{Cost of Facebook Ads}} \times 100 \]

Where:
- **Net Profit** is calculated as:
  \[ \text{Net Profit} = \text{Revenue from Facebook Ads} - \text{Cost of Facebook Ads} \]

### Example Calculation

Let's say your Facebook Ads generated $10,000 in revenue and you spent $2,000 on the ads.

1. **Calculate Net Profit**:
   \[ \text{Net Profit} = \$10,000 - \$2,000 = \$8,000 \]

2. **Calculate ROI**:
   \[ \text{ROI} = \frac{\$8,000}{\$2,000} \times 100 = 400\% \]

So, the ROI of your Facebook Ads in this example is **400%**.

### Additional Considerations

- **Attribution**: Ensure you're attributing revenue properly to the Facebook Ads. This might involve considering different attribution models depending on your sales cycle and marketing strategy.
- **Tracking**: Make sure you have proper tracking in place, such as using Facebook Pixel or UTM parameters, to accurately measure the performance and impact of your ads.
- **Lifetime Value**: If your ads are intended to generate long-term customer value, consider calculating ROI over a longer period to get a more accurate picture.

By using these steps and ensuring accurate tracking and attribution, you can effectively measure the ROI of your Facebook Ads and make data-driven decisions for future campaigns.