|
Justify your marketing budget to your stakeholders. This all looks fun, right? Well now is calculated so that you can enjoy all the advantages it brings. via GIPHY How is ROI calculated? First, let’s look at what it takes to calculate the ROI of a marketing campaign. Dear, grab a paper and take notes and write it down: Understand the investment made in your activity or action Understand the benefits (profit) you receive.
Calculator (hehe) Now let’s see what the ROI formula is: ROI Formula = (Income - Investment) / Investment * 100 After applying the ROI formula, the results obtained are expressed as percentages. How to Apply the ROI Formula Let me give you a very simple Binance App Users Data example to give you a quick idea of how the ROI formula works. Imagine that you launch a campaign in Meta Ads with a total budget of €500. Now imagine that this activity generated €1,500 in revenue. It doesn't matter? very good? Lei Gulinqi?
To calculate ROI, you simply apply these numbers to the ROI formula: ROI = (Income – Investment) / Investment * 100 ROI = (€1500 – €500) / €500 * 100 = 200 % In this case, the return on investment obtained is 200%, which means that for every euro we invest, we make a profit of 2 euros. Easy, right? If the ROI is positive, it means we have a profitable activity. To illustrate this more clearly, I've included another example here so you can understand what a negative ROI would look like.
|
|