It's called ROI. Do you know it? You might be more familiar with it if we talk about Return on Investment. This indicator refers to the profit obtained based on an investment made or planned to be made, or in other words, it measures the relationship between the profit obtained and the investment. But do you know the ABCs of ROI in Marketing? Let's get to it.
In Digital Marketing, ROI is a tool that will help us analyze the performance of any campaign . But, in addition to knowing its main functions, we are going to delve into how it is calculated, some practical examples and other indicators prepared for the performance of your business.
The ABCs of ROI in numbers
Here are some ROI statistics in the digital marketing sector according to a report published by We Are Social :
First of all, email marketing achieves a ROI of 4,300%.
And second, for every dollar spent on email marketing, the ROI achieved is equal to $40.
How can we calculate ROI?
When we launch any marketing campaign, we must analyse and israel phone number data assess the results of its effectiveness and profitability. ROI is particularly useful for the latter.
In order to calculate the ROI, a 'magic' formula par excellence is used :
In the following example we put this formula into practice to obtain the ROI result:
Let's imagine a scenario in which we invest €100 in a PPC campaign and, after completing its process, we manage to obtain €250 in profits:
In this case we obtain a return on investment of 150%. It should be noted that in this practical example other possible expenses are not taken into account.
Likewise, the result of this data is essential to determine the viability of your project, that is, if the result of the ROI is positive it means that the project is useful. On the other hand, if the result is negative it means that the investment made will not be viable.
Obtaining the final ROI result is necessary for making future investment decisions for your online business.