ROI (Return on Investment) is one of the most widely used metrics in marketing. It measures the effectiveness of investments and allows you to evaluate how successfully the funds invested in marketing activities were used. ROI is a key indicator when making decisions about budget allocation between different marketing channels and campaigns.
ROI shows how much money was made or lost as a result of investing in marketing efforts. It is expressed as a percentage and can be positive or negative. A positive ROI means that the investment paid off and generated a profit, while a negative value indicates a loss.
In the context of marketing, ROI allows marketers to evaluate thehungary phone number library effectiveness of their investments in various marketing strategies, channels, and campaigns . This helps determine which efforts are delivering the greatest return and generating the most profit.
ROI is calculated using the following formula:
ROI Calculation Formula
Profit: The amount of money you received as a result of your marketing activities.
Costs: The amount of money you spent on marketing activities.
The formula allows you to calculate the percentage ratio between profit and costs, which gives an idea of how successfully the investment is used.
Let's look at an example of calculating ROI for a specific marketing campaign. Let's say you launched an email advertising campaign for 10,000 rubles, and your profit from this campaign was 20,000 rubles.
ROI = (20,000 - 10,000) / 10,000 * 100 = 100%
In this case, the ROI is 100%, which means that every ruble invested brought you 1 ruble of profit.