💰 Marketing ROI Calculator
Calculate return on investment for campaigns
📊 Campaign Data
📈 ROI Analysis
Understanding Marketing ROI
Marketing Return on Investment (ROI) measures the profitability of your marketing efforts. It answers the fundamental question: "For every dollar I spend on marketing, how much do I get back?" Understanding and optimizing ROI is crucial for making data-driven marketing decisions.
The Marketing ROI Formula
ROI = (Revenue - Marketing Cost) / Marketing Cost × 100. For example, if you spend $10,000 and generate $35,000 in revenue, your ROI is 250%. This means you earned $2.50 for every $1 invested.
Tips to Improve Marketing ROI
- Track attribution: Use UTM parameters and analytics to know which campaigns drive revenue
- Focus on CLV: Acquiring customers who stay longer improves long-term ROI
- A/B test everything: Small improvements in conversion compound into big ROI gains
- Cut underperformers: Reallocate budget from low-ROI to high-ROI channels
Frequently Asked Questions
What is marketing ROI?
Marketing ROI measures the return on investment from marketing spend. It's calculated as (Revenue - Cost) / Cost × 100. A 200% ROI means you earned $2 for every $1 spent.
What's a good marketing ROI?
A 5:1 ratio (500% ROI) is considered strong. Most businesses aim for at least 2:1 (200% ROI). However, acceptable ROI varies by industry and marketing channel.
How do I improve marketing ROI?
Focus on high-performing channels, improve targeting, A/B test creatives, reduce customer acquisition costs, and increase customer lifetime value through retention strategies.