The return on investment (ROI) is a key figure for evaluating the success of marketing measures. By continuously monitoring and optimizing ROI, you can ensure that your marketing investments are generating the most financial benefit. At Yoline, we help you develop and implement a customized ROI strategy. Contact us to learn more about how we can help you maximize your success through effective ROI management.
The return on investment (ROI) is one of the key figures for evaluating the success of marketing measures. It helps you to quantify the financial benefits of your investments and make data-based decisions about future spending. In the area of performance marketing, it is sometimes the most important value for measuring campaign performance and optimizing or stopping it.
Calculating ROI in marketing requires collecting and analyzing various data points. This includes:
(80,000/20,000) x 100% = 300%
ROI (Return on Investment) measures profit in relation to investment. ROE (return on equity) measures profit in relation to equity. Both indicators provide information about profitability, but are based on different principles.
An ROI of 100% means that the investment has paid off in full and the profit is exactly the same as the amount of the original investment. You have therefore received back twice the capital you invested.
The ROI is calculated using the formula:
You subtract the investment costs from the profit, divide the result by the investment and multiply by 100 to get the percentage.
A “good” ROI varies depending on the industry and specific business goals. In general, an ROI of 15% to 30% is considered good, but higher ROIs are desirable.
To effectively measure the ROI (return on investment) of your marketing campaign, you should subtract the total cost of your campaign from the revenue generated and divide the result by the total costs. This results in a percentage indicator that shows the profitability of your campaigns. In addition to ROI analysis, ROAS (Return on Advertising Spend) can be useful, particularly when evaluating advertising measures such as Google Ads. Use tools like Google Analytics 4 (GA-4) and specialized ROI analysis software to get detailed insights and real-time data.
To maximize ROI, there are a few best practices to follow:
At Yoline, we know how important it is to keep an eye on and continuously optimize KPIs such as ROI. With our many years of experience in various industries, we support you in developing and implementing tailor-made performance marketing strategies.
