Marketing return on investment

Track performance, analyze, adjust, repeat

ROI in marketing is the relationship between revenues generated from campaigns versus marketing expenditures. It’s another metric companies need to establish so as to track results. Now that you’ve learned about setting up benchmarks and a marketing allowable per action, sync your ROI target with these other goals.

Initially, you might set 2 to 1 as the ROI ratio that you hope to achieve, meaning income should be double media expenses. For example, if you spend $1000 on advertising and reap $2000, you’ve achieved a 2:1.

Note, this is just a marketing ROI. Crunch separate numbers to measure net profit of the enterprise.

Once you begin marketing, choose how frequently you will review performance statistics, whether its daily, weekly or monthly. When you establish that first set of results, look for areas for improvement, curtail losing efforts and begin to test in small ways. Follow this strategy regularly and you will continue to build, prune and try new things. Eventually, you should see improvement from your initial set of benchmarks. Diligence should pay off with an upward trend.

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Learn how to find your allowable cost to acquire a sale at Calculate your marketing budget (


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