How to Track ROI from Meta Ads Campaigns

At Lillian Purge, we specialise in Local SEO Services and have developed comprehensive guidance on How to track ROI from Meta Ads campaigns.

Running Meta Ads, which include Facebook and Instagram campaigns, is one of the most effective ways to reach local audiences. However, the true measure of success lies not just in clicks or impressions but in understanding the return on investment (ROI). Tracking ROI helps determine how much revenue your ads generate compared to how much you spend, allowing you to refine targeting, optimise creatives, and scale campaigns that deliver real results. This article explains how to track ROI from Meta Ads campaigns effectively, the key metrics to monitor, and tools that make the process easier.

What ROI means for Meta Ads

ROI stands for return on investment, a measure of profitability that tells you whether your ad spend is generating a positive return. For Meta Ads, ROI can be calculated using the formula:

ROI = (Revenue from Ads – Cost of Ads) ÷ Cost of Ads × 100

For example, if you spent £500 on a campaign and generated £1,500 in sales directly from those ads, your ROI would be 200%. The higher the ROI, the more efficient your advertising is at converting spend into profit.

Why tracking ROI is important

Tracking ROI goes beyond proving whether a campaign worked. It helps you understand which audiences, placements, and creatives deliver the best performance. With this insight, you can reallocate your budget towards ads that drive meaningful results, rather than relying on surface-level engagement metrics like likes or comments.

ROI tracking also helps you:

• Justify marketing spend to stakeholders or clients.

• Identify wasted spend on underperforming ads.

• Forecast future ad budgets more accurately.

• Improve targeting based on real customer behaviour.

Step 1: Set clear campaign goals

Before you can measure ROI, you need to define what success looks like. Meta Ads can serve different objectives—brand awareness, lead generation, traffic, or conversions. If your goal is sales, ROI will be based on revenue. If your goal is leads, you may assign a monetary value to each lead based on conversion data from past campaigns.

Set SMART goals (specific, measurable, achievable, relevant, and time-bound) to ensure you can measure success consistently.

Step 2: Install the Meta Pixel

The Meta Pixel is a tracking code that monitors user activity on your website after they click on your ad. It records actions like page views, add-to-cart events, and completed purchases. Installing the Pixel is essential for accurately attributing conversions and calculating ROI.

To install it:

1. Log in to your Meta Business Manager account.

2. Navigate to Events Manager and create a Pixel.

3. Add the Pixel code to your website’s header, or use integrations like Shopify, WooCommerce, or Google Tag Manager.

Once set up, the Pixel will send event data to your Ads Manager, allowing you to track which ads are driving conversions.

Step 3: Use Meta’s Conversions API

For more accurate tracking, especially with increasing data privacy restrictions, combine the Meta Pixel with the Conversions API. This tool sends event data directly from your server to Meta, ensuring you capture conversions that might otherwise be blocked by browser settings.

This helps improve attribution accuracy and provides a clearer picture of campaign performance across multiple devices and channels.

Step 4: Track key performance metrics

To calculate ROI effectively, you’ll need to monitor several core metrics:

• Ad Spend: The total amount you’ve spent on a campaign.

• Revenue or Value Generated: The total sales or leads attributed to your ads.

• Cost Per Result: The amount spent for each conversion or key action.

• Conversion Rate: The percentage of users who completed a desired action after clicking your ad.

• Customer Lifetime Value (CLV): The long-term revenue potential of customers acquired through Meta Ads.

By comparing ad spend with these performance metrics, you can identify which campaigns are delivering profitable results.

Step 5: Use Meta Ads Manager reports

Meta Ads Manager provides detailed analytics and performance breakdowns. You can view metrics by audience segment, placement, and ad creative. Use the “Attribution Settings” to define how long after a user interacts with an ad a conversion can still be credited to it—usually 7-day click and 1-day view.

Custom reports can also show how each campaign contributes to revenue and which ones offer the best cost-to-return ratio. Export data to spreadsheets for deeper analysis or integration with tools like Google Data Studio.

Step 6: Link Meta Ads with Google Analytics

Integrating Meta Ads with Google Analytics allows you to track user behaviour after they land on your site. This gives you additional insights into bounce rates, time on site, and multi-channel conversions.

By comparing Meta’s data with Analytics reports, you can see how Meta Ads contribute to overall website traffic and sales alongside other marketing channels.

Step 7: Assign monetary value to non-purchase actions

Not every campaign is focused on direct sales. Some aim to generate leads or build awareness. In these cases, you can assign estimated monetary values to actions like form submissions, downloads, or sign-ups. For example, if 20% of your leads typically become paying customers worth £200 each, then each lead can be valued at £40.

Including these values in ROI calculations helps you measure long-term return even from campaigns that don’t result in immediate sales.

Step 8: Track ROI over time

ROI is not static—it changes as campaigns evolve. Monitor results weekly or monthly to see trends in performance. This helps you identify seasonal variations, ad fatigue, and changes in customer behaviour.

Continually testing new creatives, adjusting budgets, and refining targeting will improve your ROI over time. Meta’s split testing (A/B testing) feature is particularly useful for comparing different ad versions and finding what works best.

Step 9: Include all associated costs

When calculating ROI, include all related expenses—not just ad spend. Factor in creative production, copywriting, management time, and software subscriptions. This gives you a more accurate picture of your true profitability.

For example, if you spend £500 on ads and £200 on creative assets, your total cost is £700. If the campaign generates £2,100 in sales, your ROI is 200%.

Step 10: Optimise for higher ROI

Once you’ve gathered enough data, focus on optimisation.

• Identify which demographics or interests convert best and allocate more budget to them.

• Remove underperforming ads and reinvest in high-performing ones.

• Improve landing page performance to increase conversions from traffic you’re already paying for.

Regular analysis and adjustment keep campaigns efficient and cost-effective.

How Lillian Purge helps businesses maximise ROI from Meta Ads

At Lillian Purge, we help businesses run and track Meta Ads campaigns that generate measurable returns. Our team sets up proper tracking systems, analyses campaign data, and identifies opportunities to increase conversions while reducing wasted spend.

We combine SEO and paid advertising expertise to create data-driven strategies that improve both short-term and long-term marketing ROI. Whether your goal is to increase local leads or boost ecommerce sales, we ensure every pound spent on Meta Ads delivers maximum value.

We have also written in depth articles on How to generate leads for service businesses with Meta Ads and How to use Meta Ads for retargeting local customers as well as our Facebook Advertising Hub to give you further guidance.