Do you know how to measure your industry's marketing ROI?

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When it comes to Digital Marketing, many people understand the concepts and strategies and know what steps they should take to establish an online presence, but few have any idea of ​​how to calculate and measure the return on investment to know whether it is worth it or not.

In other words, they don’t know how to measure the company’s Marketing ROI.

ROI, from the English Return On Investment, means “return on investment”, and is one of the marketing terms you need to know.

It is the calculation that indicates slovenia number dataset your investments are profitable or generating losses, which allows you to know whether it is necessary to change your strategy to adapt to demand in a more assertive way.

To help you better understand how to measure your company's ROI, we have prepared the following topics:

How to Calculate Your Company's Marketing ROI
What about campaigns with no financial return?
Why should user actions be relevant metrics?
Don't leave metrics aside
How to Calculate Your Company's Marketing ROI
ROI is the calculation of all costs related to the process of creating, producing and selling products, from the acquisition of raw materials, team work, to the inputs needed to maintain the business.

The calculation is done using the following formula:

Do you know how to measure your industry's marketing ROI?
Remember that the profit obtained from your sales does not refer to their total value but rather to your profit margin.

“Profit margin” is understood as the revenue generated by the company.

Let's assume that your company invested 2,000 in digital marketing campaigns, while the amount invoiced in sales was 6,000, then we would calculate: (6,000 - 2,000) / (2,000 x 100) -> (4,000) / (200,000) = 200. Therefore, since the revenue would have been 4,000, the ROI, your profit percentage, would be 200%.

Do you know how to measure your industry's marketing ROI?
What about campaigns with no financial return?
Unlike when the return comes from Adwords campaigns that directly involve capital movement, investment in Content Marketing, for example, cannot be measured in the same way.

It is necessary to establish some metrics for this type of campaign/strategy, therefore, take into account each user action and interpret what they generated for your action.

In this case, the active and effective participation of each user is very important, as it allows the evaluation of the published content: whether or not it is profitable for the company and interesting for potential customers.

Therefore, reporting the number of likes, Facebook shares, retweets, comments and even reviews is essential to quantify and integrate ROI calculations.

This is because when a post is not very relevant and does not have any impact on readers, people simply ignore it.

However, when the content is interesting to the public, it provides a favorable return to your business, deserving to be taken into consideration when the results.