How do we measure ROI?
Posted: Thu Jan 30, 2025 7:09 am
To measure the ROI of a campaign, banner, action on Social Networks, etc., there is a formula from which all ROI measurements start:
ROI
For example, if you invest $100 in the campaign and receive $300 in profit, the ROI is 2% and is positive, which directly makes your business (and therefore your Digital Marketing campaign ) profitable.
If you want to generate a calculation that is healthtrax corporate email list not a percentage, you just have to divide the income by the expenses.
ROI
What happens when the ROI is negative? When the ROI percentage figures are negative, it means that your campaign was not profitable and that you are not making money from it. Everything invested is wasted in the process without generating new income.
When this happens, and the ROI is negative, you need to look back and visualize what you have done in your campaign. This way you will be able to understand what went wrong and not make the same mistake in future strategies.
These negative or positive numbers that the ROI shows will only be this way depending on the objectives that were set at the beginning of the campaign strategy, so it is always very important to generate clear and profitable objectives that your Digital Marketing strategy can meet .
Your company will always want to generate campaigns based on strategies that are profitable and that prove that they are. As long as you are working based on a defined campaign budget.
Points to consider when measuring your ROI
A study by HubSpot on the state of inbound 2014 showed that in 2013 only 3% of marketers were willing to calculate ROI. While 12% admitted not to doing so, the percentage of marketers who want to measure ROI has increased to 53% for 2014. Why? Because they have realized how important calculating ROI is for their company’s interests and objectives.
In fact, this same study shows that marketers who measure their return on investment are 17% more likely to have the same or higher ROI compared to the immediately preceding year.
But how do I know if my ROI is positive or negative if I don't have any goals? What other factors should I take into account to measure my return on investment? These questions come to mind when we start doing Digital Marketing campaigns and we'll answer them here:
ROI
For example, if you invest $100 in the campaign and receive $300 in profit, the ROI is 2% and is positive, which directly makes your business (and therefore your Digital Marketing campaign ) profitable.
If you want to generate a calculation that is healthtrax corporate email list not a percentage, you just have to divide the income by the expenses.
ROI
What happens when the ROI is negative? When the ROI percentage figures are negative, it means that your campaign was not profitable and that you are not making money from it. Everything invested is wasted in the process without generating new income.
When this happens, and the ROI is negative, you need to look back and visualize what you have done in your campaign. This way you will be able to understand what went wrong and not make the same mistake in future strategies.
These negative or positive numbers that the ROI shows will only be this way depending on the objectives that were set at the beginning of the campaign strategy, so it is always very important to generate clear and profitable objectives that your Digital Marketing strategy can meet .
Your company will always want to generate campaigns based on strategies that are profitable and that prove that they are. As long as you are working based on a defined campaign budget.
Points to consider when measuring your ROI
A study by HubSpot on the state of inbound 2014 showed that in 2013 only 3% of marketers were willing to calculate ROI. While 12% admitted not to doing so, the percentage of marketers who want to measure ROI has increased to 53% for 2014. Why? Because they have realized how important calculating ROI is for their company’s interests and objectives.
In fact, this same study shows that marketers who measure their return on investment are 17% more likely to have the same or higher ROI compared to the immediately preceding year.
But how do I know if my ROI is positive or negative if I don't have any goals? What other factors should I take into account to measure my return on investment? These questions come to mind when we start doing Digital Marketing campaigns and we'll answer them here: