Quantcast
Simple Way to Calculate Marketing Campaign ROI

Copyright © 2024 AZ Advertising CO., LLC.
All Rights Reserved.
Privacy Policy | Terms of Site Usage.

Best Advertising Agency Award for 2024 - CTA

How to Calculate Marketing ROI as a Marketing VP / Director

One of the biggest frustrations for marketing leaders within an organization is being able to clearly demonstrating ROI of marketing efforts to upper management (or stakeholders).

 

  • It can be difficult to clearly demonstrating ROI of marketing efforts to upper management or stakeholders.
  • You wish for an easy and accurate way to measure the impact of marketing strategies on revenue.
  • We all have the fear of investing heavily in a marketing strategy that does not yield measurable returns.

 

 

Steps to Calculate ROI (Simple and Straightforward Method):

 

How to Calculate ROI for Marketing Campaigns as a Marketing Leader

  1. Identify the Costs:
    • Total Investment: Calculate the total cost of the marketing campaign, including all expenses like advertising spend, salaries of the marketing team, costs of tools and software, and any third-party services used.
  2. Track the Revenue Generated:
    • Direct Revenue: Measure the revenue that can be directly attributed to the marketing campaign. This can involve tracking specific metrics such as sales from a campaign-specific landing page or through using promo codes.
    • Lift in Revenue: Consider any increase in overall sales that occurred during the marketing campaign which can reasonably be attributed to the marketing efforts.
  3. Calculate Net Profit:
    • Net Profit = Revenue from Campaign – Cost of Campaign.
    • This step requires accurate data collection and attribution to ensure you’re measuring the true impact of the marketing spend.
  4. Calculate ROI:
    • ROI Formula: (Net Profit/Cost of Campaign)×100
    • This final step will give you the ROI as a percentage, indicating how much profit each dollar of your marketing spend generated.

 

 

Example of Calculating ROI on a Marketing Campaign.

Suppose your company spent $10,000 on a marketing campaign. By the end of the campaign, you tracked $30,000 in sales that could be directly attributed to these efforts. Here’s how you would calculate the ROI:

 

  • Net Profit: $30,000 (revenue) – $10,000 (cost) = $20,000
  • ROI: ($20,000/$10,000)×100=200%

 

This ROI of 200% means that for every dollar spent on the campaign, your company earned two dollars in profit.

 

 

Finding the Right Digital Marketing Partner

Reporting is a major pillar here at Arizona Advertising Co.

We’ll prove our worth or end the relationship for  you.

Reach Out for Digital Marketing Help »

 

 
Best Advertising Agency for 2024
 
Best Social Media Marketing Agency for 2024
 
Award for the Top SEO Agency in 2024 from ReVerb
 
Best Web Developers for 2024

Blog Categories

Advertisement
Artificial Intelligence
Brand
Case Studies
Content Marketing
Creative
Digital Marketing
Email Marketing
ENDURANCE Tips
Enterprise SEO
Marketing
Marketing Insights
Newsletters
Paid Advertising
Press Releases
Search Engine Optimization (SEO) Articles
Sharing Knowledge
Social Media
The GIST
Uncategorized
Website Tips

Contact Us