If this isn’t something you can break down, then you might need to calculate your total cost as a different grouping.
Getting back to our example of Susie and her bakery. The Facebook ad that earned her all the new business cost her a total of $250.
3. Apply the overall ROI formula
Now we’re at the step where you actually apply the overall ROI formula.
Take the investment value and subtract the overall investment cost. Then you’ll take that number and divide it by your investment cost to get a percentage.
Ready to wrap up the example of Susie and her bakery?
$1,000 investment value – $250 Facebook ad cost = $750
$750 / $250 Facebook ad cost = 300%
In this case, Susie made an excellent profit off her marketing campaign… a whopping three times her investment!
While this is a basic example of what is a good ROI, sometimes the result isn’t always as profound.
What Does Multichannel Mean
As you can see from the examples we’ve given, a good Return On Investment is anytime your investment value exceeds your expenses.
If this isn’t the case, then you’ve taken a loss and the campaign was a dud from a financial perspective.
So, how do you determine whether a campaign will give you a good ROI ahead of time?
It just depends on the industry you’re in and the advertising channel you’re engaging in.
Some combinations tend to be more profitable how to buy bulk phone numbers than others, which makes it crucial to know what’s normal for both your niche and the type of digital marketing campaign you’re running.
In some industries, a positive ROI can be as high as 10 to 15%.
For others, a 1 to 2% return is sufficient.
Again, it just comes down to your target market and overall digital advertising efforts.
What Is a Good ROI for Marketing?
A particular company generally sees a good return on its original marketing investments if its earnings exceed one dollar per every dollar invested.
What Is a Good ROI for Advertising
When spreading the word about your brand, building brand recognition, and otherwise advertising your company as an entity, a good ROI would be 25-50 percent on your original investment.
This is especially the case when it comes to popular advertising methods like pay-per-click Google ads.
You can best measure your advertising ROI by Mailing Data Pro keeping careful track of where new leads are coming from (email outreach, Google Ads, etc.) and analyzing conversion profits attached to each option.
Do this even if you’ve elected to outsource your advertising to an agency.
What Is a Good ROI for an Agency?
If you run an agency (or are hoping to sometime soon), it’s worth noting that what constitutes a good ROI as far as the numbers can vary a lot from company to company.
An agency’s main objective is to ensure its clients turn a good profit and meet their goals.
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