ANALYSIS OF RETURN ON INVESTMENT (ROI) OF PAID ADS AND DETERMINANT FACTORS OF CAMPAIGN SUCCESS IN CAFES IN PALANGKA RAYA CITY

Abstract

The use of Paid Ads on digital platforms (such as Google Ads and Social Media Ads) has become a vital component of business marketing strategy in the modern era, including the culinary sector. For cafes in Palangka Raya City, optimizing paid advertising is crucial to compete and attract customers amid high local competition. However, campaign effectiveness is often not accurately measured, leading to inefficient budget allocation. This study aims to analyze the Return on Investment (ROI) of Paid Ads and identify the key factors that most significantly influence campaign success in a number of cafes in Palangka Raya City. The research will employ descriptive and causal quantitative methods. Data will be collected through a comparative case study of advertising performance data (cost, impression, click-through rate, and sales conversion) and a survey directed at cafe owners or managers. Statistical analysis will be used to calculate the real ROI value of the paid advertising campaigns conducted and to test the relationship between independent variables (such as audience targeting, ad content quality, and budget) and campaign success variables (ROI and increase in visits/sales). The results of this study are expected to provide an empirical contribution by presenting a model of paid ad success determinants relevant to the Palangka Raya culinary market context. The resulting recommendations can be utilized by cafe business actors to design and optimize digital advertising campaigns to achieve maximum ROI.