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able of Contents What is Marketing ROI,

Posted: Mon Dec 09, 2024 6:19 am
by siyam12
Published onFeb 16, 2022 - Updated onJun 16, 2024

ROI Marketing, what it is and how to calculate it: how to monitor the return of investment
Digital Marketing

ROI Marketing, what it is and how to calculate it: how to monitor the return of investment
Marketing ROI is one of the key issues when setting up Peru Phone Numbers an advertising campaign, both online and offline. With this term we mean everything related to the calculation of the return on investment.

That is, the return on investment, how and if a certain promotional activity has managed to pay for itself and generate profit. An entrepreneur should always think in terms of Marketing ROI.

Because it is thanks to the ROI parameter that decisions are made. So you can understand if a certain promotional work, with the related investments in terms of time and economic resources, has actually given the right results. Do you want to calculate the return on investment and understand if your business is benefiting from everything you are organizing with your agency, with your team or simply with your skills? Here are some details to address to delve deeper into this topic.

Ta definition
How to calculate ROI, here is the formula
5 Useful Principles for ROI Marketing
Don't confuse ROI and ROAS, you risk failure
Contextualize ROI in the outlined strategy
Adjust ROI to the circumstances you are operating in
Manage ROI with the right tools for the right circumstances
Don't continue without having ROI in your strategy
How to Tell and Show ROI
What is Marketing ROI, a definition
ROI – return on investment – ​​is a fundamental KPI for evaluating the effectiveness of an advertising strategy because it indicates the profit obtained with a specific activity.

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Thanks to this metric, so important for those who deal with digital marketing and web performance , a company or a freelancer can decide whether a promotional activity has a reason to exist.

This applies to everything from billboards to Google Ads advertising: you can understand if all this has generated a profit. But it can also draw other strategic considerations, such as those regarding the possibility of constantly improving an ADV channel or creating a comparison between two or more activities.

Must Read: What to Check Before Publishing an Ecommerce Site

How to calculate ROI, here is the formula
Marketing ROI is defined through a simple mathematical operation : profit generated by an investment minus the cost of everything that was necessary to obtain that result. The return of investment is a decisive performance index that responds to this basic formula:

ROI = Net Return on Investment​/Cost of Investment × 100

The ROI, looking at the postclick.com graph , is calculated by dividing the profit derived from the activity and the invested capital, multiplied by 100 in order to have a percentage value to adjust to the circumstances . One aspect to consider is the fact that this formula is not always easy to apply.

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This is because ROI Marketing should be based on the possibility of obtaining a clear parameter with respect to how much has been earned, the same goes for what has been spent. Furthermore, it is important to know that not all promotional activities, such as storytelling or brand awareness , can be measured.

Or at least not all of them are based on the same precision with which you evaluate social media strategy, SEO or Google advertising. Here are some useful reflections to address the topic of ROI Marketing .

5 Useful Principles for ROI Marketing
It's easy to talk about ROI in general terms . But how do you apply this useful metric for analyzing key performance indicators (KPIs) in a conversion optimization process? What do you need to know to improve CRO, conversion rate optimization, thanks to the use of ROI Marketing?

Don't confuse ROI and ROAS, you risk failure
This is a key point to address: never replace return on investment with ROAS. That is, Return on Advertising Spend , the return on advertising investment.

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