Marketing ROI: Google Ads 300% ROI vs Facebook Ads 50% = Defund Facebook
Monthly ad spend: Google SGD 10K → SGD 30K revenue (SGD 20K profit at 40% margin) = 200% ROI. Facebook SGD 10K → SGD 5K revenue (SGD 2K profit) = -80% loss. TikTok SGD 5K → SGD 12K revenue (SGD 4.8K profit) = 96% ROI. Blended: SGD 25K spend → SGD 47K revenue → SGD 26.8K profit = 107% ROI. Optimization: cut Facebook (negative), increase Google and TikTok (positive). New allocation: Google SGD 12K, TikTok SGD 8K, Facebook SGD 0 = projected +SGD 8K monthly profit.
Calculating Marketing ROI Per Channel#
ROI = (Revenue - Spend) ÷ Spend × 100%. Example: Google Ads spend SGD 10K, attributed revenue SGD 30K. ROI = (SGD 30K - SGD 10K) ÷ SGD 10K × 100% = 200%. But: revenue includes COGS cost. Better: ROI on profit. Revenue SGD 30K × 40% margin = SGD 12K profit. ROI = (SGD 12K - SGD 10K) ÷ SGD 10K = 20% (more realistic).
Attribution Challenges#
Hard to track: which ad led to sale (customer saw Google ad, then Facebook ad, then referral). Solutions: (1) Last-click attribution (give credit to last ad), (2) first-click (first ad), (3) multi-touch (distribute). AskBiz typically uses last-click (conservative, credited to channel customer used to convert).
Google Ads (search): 150-300% ROI (intent-based, buyer-ready).
Channel ROI Variation#
Google Ads (search): 150-300% ROI (intent-based, buyer-ready). Facebook (social): 50-200% ROI (awareness-based, varies by audience). TikTok: 75-250% ROI (trend-based, viral). Email: 400-800% ROI (existing customers, cheap). Organic (content): 500%+ ROI (free, but slow scale).
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AskBiz Marketing ROI Dashboard#
Tracks spend and revenue by channel, calculates ROI. "Google Ads: SGD 10K spend, SGD 30K revenue, 200% ROI. Facebook: SGD 10K spend, SGD 5K revenue, -50% ROI (loss). TikTok: SGD 5K spend, SGD 12K revenue, 140% ROI. Recommendation: defund Facebook, reallocate to Google/TikTok. Projected impact: +SGD 8K monthly profit."
- Monthly ad spend: Google SGD 10K → SGD 30K revenue (SGD 20K profit at 40% margin) = 200% ROI.
- Facebook SGD 10K → SGD 5K revenue (SGD 2K profit) = -80% loss.
- TikTok SGD 5K → SGD 12K revenue (SGD 4.8K profit) = 96% ROI.
People also ask
Should I always cut negative-ROI channels?
Not immediately. Could be: (1) brand building (loss leader), (2) first-impression channel (leads to other channels for conversion), (3) new channel (needs time to optimize). If negative >3 months and no other value: cut.
How do I improve channel ROI?
Better targeting (narrow audience), better creative (test variations), better landing page (improve conversion), better offer (increase AOV). Each lever improves revenue without increasing spend.
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Track Marketing ROI by Channel (Cut Losers, Double Winners)
AskBiz calculates ROI per marketing channel. Tracks spend, revenue, profit. Recommends channel optimization. Try free.
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