Learn to calculate the profitability of
your marketing campaigns
The return on investment is essential when evaluating your marketing movements and here we explain how to calculate it as a professional.
First of all: What do we mean when we talk about ROI? It is nothing more and nothing less about the return on investment (Return On Investment in English), that is, the profits that are generated with a certain marketing strategy, can be online or offline.
To make it easy we explain it this way:
For every dollar you invest in promoting a product, how many dollars are you earning? What has been the development and effectiveness of your marketing strategies?
Learning to calculate the ROI represents a fundamental step that will make a difference when making decisions to advertise and promote the products or services of a company because the main objective of an investment in marketing campaigns is to obtain benefits that can be translated into sales or brand positioning.
ROI can be a positive percentage, if effective strategies and campaigns are being applied, or negative, which means that your company is losing money and you need to rethink your marketing decisions.
Calculating the ROI in digital marketing campaigns, whether in Facebook Ads and Google Adwords, content campaigns or SEO can be a simple and automated process, although it requires the investment of time and attention in the design and execution of strategies. However, what happens when you want to measure campaigns that are not automated? If you don’t have the answer, ask!
An effective strategy to obtain the information is to conduct surveys on your website or via personalized (such as phone calls) to discover what motivated your customer to make the purchase, so you can verify what percentage of sales is due to your marketing strategy and through from which channels your customers received the information.
Another automated way to calculate ROI is used by many companies when working with influencers or allied web pages and they are personalized discount codes, such as:
“Enter the Atlantis University website and receive a discount of XX%
in the Master in Business Administration using the code ATLANTIS2020 ”
With this mechanism of codes, it is possible to calculate the return on investment for each individual that participates in the campaign and disseminates the information with their personalized code. If any of the promoters that the company is using does not reach the public, a strategic modification is made and a diffuser is selected that meets requirements such as: having a consistent image with the values that the company manages, reliability and a common target.
To calculate the return on investment, use the following equation: Subtract the investment from the benefit and divide the result by the investment.
(BENEFIT – INVESTMENT) / INVESTMENT
If your investment in a Google Adwords campaign is $ 10 and you get a profit of $ 20, it means your ROI is 1%. That is, you invest a dollar, recover your dollar and get another profit. Now that you know how to calculate the ROI of your campaigns. Are you ready to evaluate your campaigns intelligently?