ROI is a fundamental metric to consider in digital marketing. Acronym for Return on Investment , ROI allows you to understand if you are managing your budget correctly, or if you need to take corrective actions.
To understand how ROI is calculated in digital marketing, you need to consider several factors, based on the channels you have chosen to activate.
What is ROI?
ROI represents the return on an investment , therefore it is used to create an index that can indicate when the investment becomes profitable. If we talk about the ROI of a campaign, for example, calculating it means understanding when the investment returns in terms of income.
The ROI therefore takes into consideration two values, namely: estonia phone number library
- the net gain from an investment, to be calculated as Revenue – Costs
- The cost of that investment. More Details : the question of how mqls and sqls are
The formula to calculate the ROI will therefore be
ROI = net profit / invested capital
This ratio can also be expressed as a percentage, in which case the formula for calculating the ROI will be:
ROI = (Net Profit / Invested Capital) x 100%
ROI in digital marketing campaigns
Digital marketing has appropriated the switzerland leads concept of . How to calculate ROI, declining it in different ways, as many as the marketing campaigns that can be activated.
Return on investment can be used in web marketing as a profitability indicator of:
- an advertising campaign on Google Ads or Facebook
- an SEO activity
- an email marketing campaign
- a social media communication activity
In any case, the return must be calculated based on the objectives of the campaign itself. Such as selling a product or service or increasing the visibility of a brand.