How to calculate the ROI of your integrated digital marketing campaigns: Many companies have some difficulty in calculating the ROI of their marketing actions. Are you part of this group? Then this article may be especially useful to resolve doubts and make your organization grow more and more.
This is especially true when it comes to integrated digital marketing
A recent study showed that spending on social media advertising increased by 21% in 2018, reaching over $58 billion worldwide. Meanwhile, spending on video ads increased by 19% to $32 billion in 2018.
For all this volume of investment to have the expected effect, companies need to know how to calculate the ROI of all these actions.
And this also applies to your company:
To continually improve your business performance, you need to know how to differentiate which strategies work well and which don’t – and correct them in time. Find out how to do this in the following reading.
What is ROI within integrated digital marketing?
Integrated digital marketing ROI is the measure of the profit or loss your company generatesfrom digital marketing campaigns, based on brazil telegram data the amount of money invested.
In other words, this measure tells you whether your organization is getting its money’s worth from its marketing campaigns.
When there is a positive return on investment, it means that your campaigns are generating more money than is being spent on them.
Why is it important to know how to calculate ROI?
And if you don’t effectively measure the ROI of your campaigns, your company won’t know for sure whether it’s wasting money or spending its digital marketing budget wisely.
Knowing how to calculate digital marketing
ROI is also important from an improvement maldivian lads perspective. Once you’ve identified which areas aren’t performing as well as your planning had determined, you can work on analyzing these aspects of your campaigns and take practical steps to improve performance and achieve the KPIs you’ve set.
Knowing the ROI of different aspects of your campaigns also helps your company better understand where to allocate your marketing budget to get the best results.
Return on Investment (ROI) Formula
Return on investment (ROI) is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment.
A percentage increase or decrease in the value of the investment during the year in question is shown.
To know how to calculate the ROI of the integrated digital marketing actions carried out by your company, you need to divide the revenue in three different ways:
- The revenue generated from sales of the product;
- The money spent on your campaign or any other;
- Profit, which is the difference between total revenue and the costs to create your campaign.
Net income represents the amount of income remaining
After all operating expenses, interest, taxes, and preferred stock dividends.
If it indicates a positive result, it means that your company has made a profitable investment. If the result is negative, it is necessary to analyze where the strategy is acting incorrectly and restructure its applicability, in order to provide a positive result.
It is also important to emphasize that even in positive cases, your company must maintain the routine of analyzing the ROI more expressive.