ROI Calculator - Return on Investment

What is ROI?

Calculating Return on Investment (ROI) is important when undertaking marketing investment and marketing channel assessments. It allows you to review the performance of your current marketing strategy and assists in prioritising channels with the highest forecast return.

ROI directly measures the financial return (revenue) on a particular financial investment (marketing spend). You can use the ROI calculator to assess and compare the forecast return on any marketing channel, including online (Paid Search, Display, Social Media Advertising) and offline channels such as TV, Radio and Print Advertising. Calculating your digital marketing ROI allows you to see where you should be moving spend allocations between SEO, paid search, social and other online channels, as well as creating a common benchmark to compare your digital marketing to offline marketing efforts. ROI driven digital marketing requires precise tracking and clear data – you can use this tool as a your SEO, paid search or social media ROI calculator to get an idea of where you currently stand.

For example, the Marketing Manager of Loud Gyms invested $1,000 in Paid Search, $1,000 in Social Media Advertising and $1,000 in Radio Advertising. Each returning revenues and ROI of $3,500 (250%), $2,500 (150%) and $500 (-50%) respectively. In this example Loud Gyms might decide to reinvest $500 from Radio Advertising into Paid Search or Social Media Advertising where they are achieving a positive ROI. But keep in mind, each channel addresses a different marketing objective!



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