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What is marketing ROI?

Are you confused by the constant digital marketing jargon and acronyms. CPC, CTR, ROI, CPA… the list goes on and on. If you’re running a business or selling marketing services the most important metric that you must track is return on investment (ROI). There are multiple ways to track your ROI, but it is always important to understand if you’re marketing has the potential to be profitable before you start (hint hint…. a forecast could help).

Marketing ROI can be calculated in numerous ways whether it’s sales ROI, gross margin ROI or customer lifetime value ROI. At the end of the day it means that you need to make more than you spend. If your marketing can contribute a positive return to your bottom line then you should be happy. Understanding marketing ROI requires analysis and understanding of things like your average sale, gross margin, repeat buys and referrals. Make sure ROI is at the top of your list to analyse before you start any marketing campaign.

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