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How to Measure ROI Monday, March 13, 2017
While calculating marketing ROI can be complex given the number of variables that emerge. It is vital to understand it. As marketing investments, particularly in content, continue to increase, executives everywhere are looking for the data that justifies the money spent.
By following through all your content investment turned into customers you can quickly measure content ROI. Add up the total cost it took to develop the content (including the cost of designers and the hourly rate of the people who spent on the content). Your content marketing formula should look like: (total revenue generated by piece of content – total cost)/total cost.
You can easily use this formula to get an overall ROI of your content or any other marketing effort you implement, by totaling the cost of all your marketing spend and measuring against total revenue generated.
While there are other factors to consider when it comes to ROI (brand awareness, search engine ranking, website authority, etc.), this simple formula can quickly help you develop marketing tactics as well as demonstrating marketing’s value.
When it comes to field marketing you can use the same formula (gross profit – marketing expenses)/Marketing Expenses. You can use this formula to calculate trade show ROI.
You should definitely put your marketing ROI into context. Measure it against the industry average, if the average is 30%, this should be your aim. If you’ve been measuring ROI for quite a while, measure it against your own successes and failures during previous periods and even against company targets.
Hitting ROI objectives will ultimately decide on the success of your role and your marketing strategies.