Importance of ROI in Digital Marketing
ROI is a key word in digital marketing because it helps us determine whether advertising campaigns and other initiatives are generating a positive economic return compared to the costs incurred. It is one of the main metrics to justify investments and optimize strategies based on concrete results.
1. Basic ROI Formula:
Basic ROI Formula
Example : If an advertising danish mobile number campaign generated €1,000 in revenue and the cost was €200, the ROI would be:
Example Basic ROI Formula
2. ROI for a Marketing Campaign:
Example Basic ROI Formula for Advertising Campaign
Example : If a campaign generated €5,000 in revenue and the campaign cost was €1,000, the ROI would be:
Example ROI formula for advertising campaign
One of the common mistakes in calculating ROI is not including all the costs associated with the investment, such as management and opportunity costs. Another mistake is to focus only on immediate profits, neglecting the long-term benefits of the campaigns. Finally, it is important to avoid comparing ROIs of different projects without considering the differences in costs and results.