Are you getting the return on your investment?

How much do you spend on you marketing? Do you know what your return on the amount invested is?

A common definition of Return on Investment involves looking at the cost of a marketing campaign relative to the profit generated.

For example

You put £1000 into a campaign to try to sell £100 worth of goods. You sell 30 of them at the profit of £50each making a total profit of £1500 on the campaign.

But this profit is before the cost of the campaign so take off the campaign costs I.e. £1500 profit less cost £1000 = £500

The return gained is £500 from your original marketing investment of £1000.

Your Return on this Investment is £500 divided by £1000 = 50% ROI.

Working out your return on investment ensures that you are spending your money on the best form of marketing.

This is a simple calculation of Return of investment without factoring in the element of time.

Calculating the ROI it’s not just for large companies…. Everyone in business needs to know the sums.

  • Make sure you know how much you are spending.
  • If it’s working them repeat if not then try something else
  • ALWAYS make sure you know the sums

Alway working out your return on investment as it will ensure that you are making the most of your marketing budget.