Cherry Seed

How do I calculate ROI of better tracking?

Quick Answer

ROI = (Revenue recovered from better attribution + Ad spend saved from improved optimization - Cost of tracking solution) / Cost of tracking solution. With 20-40% conversion recovery and 15-35% ROAS improvement, most tracking investments return 3-10x.

Full Answer

Apply this formula: (monthly ad spend × estimated data loss percentage × expected recovery rate) divided by monthly tracking solution cost. For example, a business spending $15,000/month on ads losing 30% of conversion signals could recover half with server-side tracking. That's $2,250/month in recovered attribution value against a $89-259/month solution cost—yielding 8-25x ROI. Factor in the compounding effect: better data improves algorithm optimization over time, so ROI increases each quarter as the platform's models improve.

Sources

Programmatic Access

GET https://seresa.io/wp-json/cherry-tree-by-seresa/v1/seeds/17

Cite This Answer

Cherry Tree by Seresa - https://seresa.io/seed/business-value-roi/roi-fixing-tracking-calculate-roi