ROI is the acronym for Return On Investment. It is the method used to calculate the profits of a company through its investments. This tool helps us to obtain the results so that we can analyze how our company is performing from a financial perspective.
An acceptable ROI for an advertising campaign varies between 4: 1 and 6: 1. Any result below those values ​​will be telling us that we have a significant benefit.
To calculate the ROI, we will subtract the investment we have used from the profits and divide it by it. This is the formula to calculate it: ROI = (Profit – Investment) / Investment. If the result obtained in the formula gives us an ROI lower than 0, it will be telling us that our investment has had a negative return. If, on the contrary, the result is above 0, the return will be positive and we will be obtaining profits.
Its impact is fundamentally based on the information you give us. It tells us that promotions or advertising campaigns are being beneficial. Thanks to the data you provide us, we will know the number of sales made for each euro we have invested. It will also provide us with very valuable information to know what improvements we can use in future campaigns and thus achieve greater success.

The importance of knowing how to calculate ROI

If we know how to calculate the ROI of our campaigns, we will know which of the different forms of investment in marketing will be the one that will provide us with the best return in the form of customers. In addition, its calculation gives us the opportunity to anticipate and forecast the operating ratios. A follow-up of the results of the continued ROI will allow us to cancel campaigns that are not reporting what is expected.

Bibliotecaria frustrada que un día descubrió el potencial que tenía de creatividad y después de varios cursos de marketing decidió explotarlo en redes sociales y terminó haciéndose community mánager de diferentes empresas y artistas. Le encanta el silencio pero es melómana hasta la médula, puro espíritu de contradicción. Fanática de libros, películas y series de terror. Vive mirando una estrella, siempre en estado de espera.