Post by account_disabled on Mar 6, 2024 0:02:43 GMT -5
Could you define what ROI is? If you are dedicated to marketing or work in a sector related to this discipline, the concept is probably familiar to you. However, it is important to know it beyond these environments, since it is a term that is increasingly necessary in the professional field. ROI is a simple formula whose result provides valuable data on a company's profits and economic performance . If you want to know more about what exactly ROI is and how you can calculate it, we will tell you below. What is ROI ROI is the acronym in English for “ Return On Investment” , whose translation into Spanish is “return on investment”. It is one of the main metrics used in marketing today to calculate the profitability of some investments , such as a specific campaign or action. And until the appearance of this type of indicators, the results were not very objective or accurate. Although there are times when money is not invested in some advertising actions, such as organic positioning in search engines or organic publications on social networks , there are others that do require it.
These cases, it is essential that you calculate the ROI to be able to clarify whether the campaign or action in question has generated losses or profits and, above all, if this benefit is sufficient to be considered a profitable action for the company. How is ROI calculated? ROI is always expressed as a percentage. However, to be Europe Mobile Number List able to find the figure, you just have to apply a very simple formula . However, first you need to be very clear and delimited about the data you are going to use: Investment in a campaign or action: how much money have you spent to implement the action? The profits: how much money have you received thanks to it? Once you have this data, it is time to calculate the ROI. To do this, you must do the following: Subtract the investment you have made from the profits you have obtained. Divide the result by the investment. Multiply the result obtained by one hundred. ROI= [(Profit - Investment) / Investment] X 100 So that you can understand it better, imagine that a campaign has brought you a profit.
Next, you must divide this result by the investment, and multiply it by one hundred: ROI With this campaign you have obtained a return of 150%. As you can see, the final ROI is a positive percentage (150%) , this means that the ROI is positive or, in other words, that the campaign has been profitable because it has meant a benefit for the company . However, the opposite situation could happen , that is, the investment was greater than the profits. In this case, the ROI would be negative and, therefore, the action does not bring any benefit to the organization , but rather losses. Let's see how the ROI would be calculated in this case with another example: Imagine that you invest €800 in an advertising action and obtain a profit of €600 . In this case, the ROI would be -25% : ROI= [(600 - 800) x 100]800 ROI= -25% what-is-the-roi Elements to take into account when calculating ROI When calculating ROI, it is important to pay attention to various elements or factors that will also help you identify if the results are positive or negative. In this sense, one of the first parameters you should look at are the established objectives . And ROI is the most appropriate metric when the main goal of a campaign is sales .