ROI in Marketing: How to Calculate and Increase Return on Investment?

[mehadihasan123456]

Are your investments in advertising and promotion paying off? Read our new article to find out how to calculate ROI in 10 seconds, how to calculate ROI incorrectly and without necessity, and what coefficient is considered good.

ROI (Return on Investment) is important
To understand how much money each invested penny brought in, the concept of profitability is used. ROI can be calculated for anything - a separate service, an asset, an employee. In this article, we will consider the return on investment and learn how to calculate the effectiveness of investments in promotion.

What is ROI in Marketing
Return on investment allows you to determine the effectiveness of a specific afghanistan email list channel, campaign, or promotion. The formula used for calculation is:

ROI = ((Profit from advertising channel – Investment) / Investment) x 100%

The result is valid provided that one marketing channel is used during a specific time period. Or if several tools are used, but it is possible to clearly separate incoming conversions.

Important! The ROI formula contains the “Investment” indicator, which should take into account not only the advertising budget, but also related costs: for example, payment for the work of a PPC specialist forSetting up contextual advertising, the copywriter for writing the ad, the online service for providing services.