Justification of investments to decision-makers
Posted: Sat Dec 14, 2024 5:50 am
ROI provides a numerical basis for demonstrating the value of marketing initiatives. Marketing managers can use this metric to convince decision makers to continue or increase budgets.
An email campaign that generated a 400% ROI justifies the investment in an email automation platform or personalized content.
2.3 Identification of the most profitable strategies
Analyzing ROI helps identify which strategies phone lookup mexico work best for a given business. In fact, a business may find that video ads on YouTube generate a higher ROI than text ads on Google Ads.
This understanding helps refine strategy and maximize long-term results by focusing on the most effective channels and formats.
3. Methods for calculating marketing ROI
3.1 Classic formula: a universal base
The standard formula for calculating ROI is:
It measures the overall profitability of a campaign. If an advertising campaign costs $2,000 and generates $8,000 in profits, the calculation is:
This means that for every dollar invested, $3 was earned.
3.2 Variants adapted to specific campaigns
For more detailed analysis, ROI can be calculated by channel or by campaign type.
SEO : ROI based on organic gains attributed to strategic keywords.
SEA : ROI calculated on cost per click (CPC) and conversions from ads.
Social networks : ROI measured on the turnover generated by sponsored campaigns, taking into account interactions and conversions.
An email campaign that generated a 400% ROI justifies the investment in an email automation platform or personalized content.
2.3 Identification of the most profitable strategies
Analyzing ROI helps identify which strategies phone lookup mexico work best for a given business. In fact, a business may find that video ads on YouTube generate a higher ROI than text ads on Google Ads.
This understanding helps refine strategy and maximize long-term results by focusing on the most effective channels and formats.
3. Methods for calculating marketing ROI
3.1 Classic formula: a universal base
The standard formula for calculating ROI is:
It measures the overall profitability of a campaign. If an advertising campaign costs $2,000 and generates $8,000 in profits, the calculation is:
This means that for every dollar invested, $3 was earned.
3.2 Variants adapted to specific campaigns
For more detailed analysis, ROI can be calculated by channel or by campaign type.
SEO : ROI based on organic gains attributed to strategic keywords.
SEA : ROI calculated on cost per click (CPC) and conversions from ads.
Social networks : ROI measured on the turnover generated by sponsored campaigns, taking into account interactions and conversions.