Knowing the profitability of an investment is essential in Marketing. To calculate it, the most widespread formula is ROI ( Return On Investment ), which allows us to know if the campaign we have carried out has had a positive or negative economic return for the company. In this post we are going to know in depth: Why is it important to know the Return on Investment? The main objective of both Offline and Online Marketing is to generate sales . Event Planner Email List Due to this, knowing the return that each euro invested in a campaign has obtained becomes essential. The first reason why ROI is important is because it allows us to know if a campaign, in economic terms, has been successful or not . Also knowing the return of a campaign helps us to plan the steps to take in the future. In this way the campaigns that have had a negative return will be eliminated, improved or replaced by those that do work in the planning. goals Knowing what the objective of the campaign to be carried out is essential, since it directly affects the rest of the elements necessary to calculate the ROI. In addition, it must be decided before running the campaign .
The main objectives are: Economic transaction: companies can create campaigns aimed at the sale of their products or services. This would be the simplest and most widely used case in business. Leads : with this type of campaign, companies seek that users do a certain action on the web, such as filling in a form. The difference with the previous objective is that it has no monetary value at the moment, although it can have it in the short or medium term. Branding: these types of campaigns are made to create, maintain or improve the notoriety and positioning that users have in mind about the brand. Calculating the ROI in these campaigns involves a different process that we will see later. The KPI’s or Key Performance Indicator are those performance indicator metrics that allow us to assess whether the objectives we have set for ourselves are being met. For each objective you must establish different KPI’s and this is done before carrying out the campaign.
Income To calculate the ROI it is necessary to know the income, so it is you have to know the money or monetary value that a campaign has generated. If the objective is to sell products or services , calculating it is relatively easy because they involve a monetary expense. In lead campaigns , you must give each lead an average value to be able to calculate it. They are generally between € 2-10, although it depends on the case. In branding campaigns it gets complicated. A little later you will find a section dedicated to this type of campaign and how they are calculated. Budget Knowing the budget of the campaign is essential to be able to calculate the ROI. Gambling Gmail List Within the budget we can find 3 elements that make it up: Material Expenditure: on many occasions to carry out the graphic part of the campaign it is necessary to hire or rent materials, workspace and tools. An example would be renting a camera, buying icons for a graphic piece or a room for a photo shoot. Human Expenditure: in this section you must collect all the money invested in personnel and management expenses that the campaign has had. For example, you must take into account the hours of the person who managed the campaign or the time needed to make the graphs. Investment: some campaigns require an investment, in addition to the expenses we mentioned above. By the term investment I mean, for example, the 2,000 euros that Google charges you in an AdWords campaign or the 500 € that Facebook has charged you.