What is ROI and is it the same as profit on return? In this short article we will help you learn some of the key things that you need to know about measuring ROI, including some of the specific metrics you should use to calculate ROI for digital marketing campaigns.

Last Updated: October 19th, 2023

Understanding Return on Investment.

ROI stands for Return on Investment, which is a key performance measure for any business activity. It’s often used to determine the profitability of expenditure and is exceptionally useful for measuring success over time. To calculate ROI, simply divide the gains from your investment by your investment’s cost. The result can be expressed as a percentage or a ratio, making it an extremely valuable tool for evaluating marketing projects.

Return on Investment (ROI) =

Net Return

Cost of Investment

Regardless of company size, type or industry, ROI can be used to help eliminate guesswork when determining which investments provide the greatest return for your business. For the purposes of this article, in the sections below, we’re going focus on ROI for digital marketing campaigns.

ROI For Digital Marketing Campaigns.

Undoubtedly the objective of marketing is to spread the word about your product or service, which naturally helps your sales. So the success or failure of a campaign could simply be about its ability to drive revenue.

However, the marketing ROI calculation is often more complex and nuanced, than when calculating for something physical, like a new piece of equipment. So it’s important to bring other metrics into consideration as well.

Digital Marketing ROI Metrics

The specific metrics you use to calculate marketing ROI will depend on your business goals. But where possible calculations should especially include or consider the following metrics:

  • Number of campaign impressions
  • Number of clicks
  • Click through rate (CTR)
  • Cost per acquisition (CPA)
  • Audience engagement
  • Conversion rate
  • Brand awareness

Using these measurements alongside good analysis, you’ll be able to take into account more than just pure revenue, and always consider the long-term benefits of each individual campaign.

Is ROI The Same as Profit on Return?

ROI and profit on return are not the same thing, but they are related. Return on investment is a measure of how much profit an investment generates relative to its cost. Profit on return, on the other hand, is simply the profit that is made on an investment, regardless of its cost.

ROI Marketing.

When it comes to helping companies capitalise on ROI marketing, before launching any activity, we always work with clients to identify the key objectives of their campaign. From the outset it’s important set and agree each key metrics so that data can be gathered and measured. This way, there will be a clear understanding of what constitutes a positive return.

Client Campaign Dashboard Laptop

For digital campaigns we use services like Google Analytics, ads and search console in conjunction with other tools to provide our clients with detailed performance reports to measure progress against targets.

Additionally, for each package tier of our Audience Management and Content Management Services, we provide custom live campaign dashboards which clients can access 24/7, by logging in.

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