When it comes to digital marketing, many understand concepts and strategies and know what steps they should follow to establish an online presence.
However, few have any idea how to calc Chinese Overseas Asia Number Data ulate and measure investment returns to know whether they are paying off or not.
In other words, they don’t know how to calculate the industry’s marketing ROI.
ROI, from the English Return On Investment, means “return on investment”, being one of the marketing terms you need to know.
This is an investment calculation capable of indicating whether your actions are profitable or whether they are generating losses.
This allows you to know if it is necessary to change your strategy to adapt to demand in a more assertive way.
So that you can better understand how to calculate your industry’s ROI, we have prepared the following topics:
Learn how to calculate your industry’s marketing ROI
The return on investment goes beyond the financial part
Learn how to measure user actions
Don't leave metrics aside
Learn how to calculate your industry’s marketing ROI
The ROI formula is the calculation of all costs related to the process of creating, producing and selling products.
This applies from the acquisition of raw materials and team work, to the inputs needed to maintain the business.
Calculating return on investment is simple, just use the following formula:
Note: Remember that the profit obtained from your sales does not refer to their total value, but rather to your profit margin.
Furthermore, “profit margin” means the revenue generated by the company.
Let's assume that your company invested 2,000 in digital marketing campaigns, while the amount earned from sales was 6 thousand.
With this, we can calculate: (6,000 – 2,000) / (2,000 x 100) -> (4,000) / (200,000) = 200.
So since the revenue would have been 4,000, the ROI, your profit percentage, would be 200%.
The return on investment goes beyond the financial part
Unlike when the return comes from Adwords campaigns, which 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 generate for your action.
In this case, the active and effective participation of each person 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, notifying the number of likes, shares on Facebook, retweets, comments, and even criticisms is essential to quantify and know how to calculate ROI.
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 and generates engagement, it provides a favorable return for your business, and deserves to be taken into consideration when measuring results.
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