One of the fundamental questions that we get asked when we talk to sellers is that how do we measure return on investment and what does it look like?

Many sellers are new to advertising and hence the questions and doubts remain.

So how does one measure ROI on Snapdeal Ads. Does Snapdeal Ads provide ROI at all? I will try to answer those questions for you in our blog.

Snapdeal Ads charges on the basis of Cost Per Clicks (CPC). Though in your console, for the sake of simplicity, we have hidden this value., charges for CPC could be at Rs 2.00 or up. In your campaign console, you might end up seeing reports in the following format:

What does it all mean?

Impressions – Number of times your products were shown as ads.
Clicks – Number of clicks that have occurred.
Number of Conversions or units sold. This could be the unit SUPC 101 OR any other unit that you might have put up for sale. This is very important to remember that sometimes units that you did not advertise can be sold because visitors see other products when they click on your ad.

This also happens that the number of products sold is sold on days other than when you spent for advertising. Why does this happen? Because we cookie and track the user and count the sale that has been influenced by ads over a 30 day period.

We don’t typically show the ROI column or the CPC column. But this is easily calculable by looking at the GMV. In this case, the GMV is 10X more than the advertising spend, therefore showing a 10X return on investment in advertising.

How our ROI works?

The 10X number in this case is the ROI. A 10X ROI indicates 10 times more income as opposed to the Ads investment and such an investment is not uncommon when investing in Snapdeal Ads.

It is important to keep in mind that this number might vary for category or products, on different days.

In any case it is clear that for the money you invested – Snapdeal will be able to deliver a ROI depending upon the category of products sold, and is typically in the multiples of the Ad spent that was used.

Advertising happens to be one of the most important investments that you can make to gain higher visibility on Snapdeal.

Do let us know if you have any more questions around measuring ROI and we gladly help you get more clarity.

Write to us to adsales@snapdeal.com for more information.