![]() ![]() Return: The total revenue you generated from these conversions.Conversion goal: Which type of conversion goal you’re measuring (sales, sign-ups, leads or visits).Conversions: How many conversions you generated from your investment.To calculate your marketing ROI, simply follow the steps on the form above, starting with how much you have spent on any given campaign or strategy – e.g.: $10,000.Ĭlick on the continue button and the next step will ask you to provide the following three details: You can even embed this form on your own website by filling it out and clicking on the embed link on the final results page. To help you calculate the marketing ROI of different strategies, we’ve built an ROI calculator, powered by TrueNorth.io and built using Leadformly. So that’s the basic formula of calculating return on investment but, in reality, accurately calculating marketing ROI is a little more complex than that – something we’ll explain in more detail throughout the remainder of this article.įirst, though, let’s take a look at our ROI calculator. * Figures rounded to the nearest hundredth decimal Your marketing ROI calculation would be as follows: Let’s say one of your marketing campaigns has generated $100,000 revenue over the past financial year and the total marketing spend on that campaign comes to $38,000. ROI = Marketing revenue – marketing spend / marketing spend x 100 So your basic ROI calculation formula would look something like this: The most basic method of calculating ROI is to subtract your marketing spend from the revenue generated, divide this figure by your marketing spend and then times the resulting figure by 100. ROI is measured as a percentage and there are numerous ways to calculate it – several of which we’ll be looking at in this article. In other words, ROI measures the difference between how much you spend on marketing activities and how much money they generate. So what exactly is marketing ROI? Well, return on investment (ROI) aims to tell you how much revenue you’re getting in exchange for your total marketing spend. In articles like this, it’s always best practice to start by defining the subject to make sure everyone’s on the same page. Once we’re done, you should have everything you need to calculate the ROI of your marketing campaigns and a better understanding of how to use (and not use) return on investment as a marketing KPI. Here’s a preview of what we’re looking at: In marketing, there is no one metric to rule them all and ROI should be used alongside other performance indicators to build a complete picture of campaign performance – something we’ll explain in more detail throughout this article. That being said, it’s important to understand that ROI isn’t the perfect KPI – a trap many marketers and business owners fall into. Aside from proving the value of successful marketing actions, this will also enable you to identify areas for improvement and optimise your campaigns to improve performance. ![]() Our priority with this article is to help you accurately calculate the ROI of your marketing campaigns. In this article, we explain how you can calculate marketing ROI more effectively, why it’s so important to do so and some of the difficulties/limitations you might experience along the way. ![]() Not only do business executives expect you to show the value of your marketing efforts in plain numbers, you also need to know yourself which strategies are profitable. ![]() Fewer than 50% of marketers are confident about proving the success of their marketing activities – Skyword’s 2020 Content Marketing Trends Report.Īccurately calculating the return on investment (ROI) of every marketing action is crucial for proving that they contribute to generating revenue – whether it’s directly or further down the consumer journey. This makes it difficult to put a monetary value on strategies like content marketing or individual ad campaigns that might be essential for generating leads but don’t close the deal themselves. Proving the value of marketing campaigns can be difficult, especially at the earlier stages of the marketing funnel where conversions and KPIs aren’t directly linked to sales or revenue. ![]()
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