Marketing ROI Tells You If Your Marketing Efforts Are Worth It

marketing revenue report
July 8, 2022

Digital marketing doesn’t work the same for every company. The positive aspect of digital marketing is that you can get an inside look at what is working for you and what isn’t. If you find that you’re spending a lot of money on your marketing efforts, then you should constantly analyze whether those efforts are performing optimally. Even if they seem to be working, how do you really know? Have you ever zoomed in on the numbers and gotten an accurate picture of your marketing plan’s performance?  

 To determine something’s profitability, you need to compare the cost of your revenue with the costs of producing your product. Your marketing costs should also be a factor in this. When you launch a new marketing campaign, don’t just spend blindly. The component that you should prioritize is testing whether the cost of marketing is helping or hurting your company.  

 ContentFirst.Marketing Provides Marketing ROI Analysis  

 Marketing return-on-investment (ROI) is an essential metric for any business looking to maximize profit while minimizing spending. Marketing ROI analysis should be the driving factor in your marketing plan.  

 ContentFirst.Marketing can help your company build a marketing campaign that is measurable and profitable. Developing and implementing a customizable, data-driven marketing ROI plan ensures smarter decision-making. Therefore, this is a concept that supports a thriving business.  

 What is Marketing ROI? 

 Marketing ROI is a way of comparing the amount of money you spend on a project with the revenue you gain from it. When calculating ROI for marketing, you attribute profit and revenue growth to the impact of marketing tactics. By calculating ROI in marketing, you can see which tactics are profitable and which ones are contributing to a loss for your business.  

 Benefits of Calculating your Marketing ROI 


Understand What’s Working 

It’s hard to know what’s working if you don’t know how to measure performance. If you calculate your ROI for your digital marketing strategies, you can easily see what’s driving sales. From here, you can adjust as necessary to drive better results. 

 Determine Where to Invest 

 Learning what marketing strategies and working and which ones aren’t helps you determine where to shift your budget in one of two ways. You can move your budget from a weak marketing channel to a stronger one. Furthermore, you can put more money into underperforming marketing campaigns to help optimize their performance. 

 Evaluate Competitors 

 Understanding your marketing ROI helps give you a better picture of how you perform in your industry. Knowing how to compare your competitors can help you decide what adjustments to make to your marketing strategy. Therefore, this will help you achieve a better outcome and perform better than your competition.  


Challenges of Measuring Marketing ROI 

 Multiple Touchpoints 

 Calculating the revenue generated from all marketing activity is difficult because a customer’s journey isn’t linear. Every customer journey is unique because they interact with your business in multiple ways. The most common way of interacting with consumers is through email, blogs, videos, social media, and a search engine. The fact that there are so many strategies makes it challenging to pinpoint which channel generated a conversion.  

 Measuring at the Right Time 

 Again, each customer’s life cycle is different, so they do not purchase in the same amount of time. Others are more impulsive and convert much faster. Additionally, some strategies take longer than others to convert, for example email versus pay-per-click. This makes it challenging to attribute conversions to the right marketing campaign at the right time. 

 Influence Level 

 Not every digital marketing campaign will resonate with your audience the same. Some will act, while others will not. This can affect your data and make it more challenging to measure your ROI accurately. 

 How to Calculate a Marketing ROI 

 With today’s expansive digital reach and complexity of variables, there are lots of different ways to formulate marketing ROI.  

 The most straightforward formula for measuring marketing ROI is:  (Return-Investment) / Investment 

 The challenging part of this formula is that it’s hard to know what qualifies as an investment.  

 Here is a list of some marketing expenses:  

  • Pay-per-click spend 
  • Display ad clicks 
  • Media spend 
  • Content production costs 
  • Outside marketing and advertising agency fees 

 A more precise formula for calculating marketing ROI is: [(Number of leads x Lead to customer rate x Average sale price) – Cost for marketing] / Cost for marketing 

What is a Good Marketing ROI? 

 At an absolute minimum, you need to cover the cost of making the product and the cost of marketing it. A 2:1 revenue to marketing cost ratio isn’t profitable for business, as the cost to produce the item sold is about 50% of the sale price. With this prospect, you might as well save yourself the money and not market your product. 

 An outstanding ROI is 10:1, or $10 for every $1 spent. This is a bit unrealistic and shouldn’t be the expectation for your marketing campaign.  

 A good marketing ROI is 5:1, or $5 for every $1 spent. This is a profitable ROI and a more realistic target goal. 

Tools to Help Calculate your Digital Marketing ROI 

 It can be challenging to understand how to calculate your marketing ROI. Calculating the revenue generated by each marketing activity is difficult yet necessary. It’s not easy to calculate the revenue generated for all marketing activity, but it is essential. Luckily, advances in web analytics software and methodology provide better insight for measuring activity over time and across different channels. Choosing the right tools and calculating the correct numbers will help you reach an accurate ROI value.  

 Here is a list of popular software programs that work across various channels and the metrics they can monitor and report. 

  • Content Marketing 
    • Google Analytics
    • Cyfe
  • Advertising 
    • Blogging
    • Email
    • Sales and finance
    • SEO
    • Social Media
    • Web analytics
  • Social Media Marketing
    • Hootsuite
    • Sproutsocial
  • Search Engine Marketing ROI
    • SEMrush
    • Sleeknote

ContentFirst.Marketing for your Marketing ROI Needs 

It’s simple to get an inside look to see how our marketing strategy is performing. Learn how to calculate your marketing ROI and see if your campaigns are driving the results you want. If your campaign isn’t driving the best results possible, it’s never too late to revamp your strategy. Your marketing efforts have taken a lot of time and money to ignore tracking and measuring their effectiveness.  

Being able to monitor the success of your marketing avenues will save money, but will also generate more revenue! ContentFirst.Marketing knows how to build a performance-based marketing strategy that will deliver the measurable results you need. 

 Reach out to us and find out how we can become your long-term marketing partner with guaranteed success. Start improving your marketing ROI and expand your business goals. 

 Contact us today.  

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