Return on marketing investment (ROMI) indicates how much you spend for different purposes of your business & how much you get on return; even a single cost that you have paid must be counted.
Therefore, you have to gather much information & need a calculator so that you can get every info accurately; the calculator has all buttons you will need.
What are the Uses of ROMI Calculator?
Let’s see the things you can do with a ROMI Calculator:
- First of all, you can identify if your company is running in loss or profit & how much return you are getting.
- Secondly, you can control the investment in a specific area if you think the spendings are excessive according to you.
Return On Marketing Investment Formula:
If you want to know that how to calculate ROMI then you need to calculate baseline profit, Marketing Campaign Profit, profit with marketing cost, and campaign uplift.
See the below all steps how to to these and get the ROMI.
Suppose, Campaign revenue $120000, Campaign Cost of Goods Sold $110000, Marketing cost $2900, Baseline revenue $24000, Campaign revenue $120000, Baseline cost of goods sold $22000
How to find the Baseline Profit?
Follow the formula to find the Baseline profit= Baseline revenue – Baseline Cost of Goods Sold
Baseline Profit Example:
=24000 – 22000
How to find the Marketing Campaign Profit?
Follow the formula to find the Marketing Campaign Profit= Campaign Revenue – Campaign Cost of Goods Sold
Marketing campaign Profit Example:
=120000 – 100000
How to calculate the Profit with Marketing Cost?
By following the formula calculate the Profit With marketing Cost= Marketing Campaign Profit – Marketing Cost
Profit With marketing Cost Example:
=10000 – 2900
How to calculate the Campaign Uplift?
By following the rule calculate the Campaign Uplift= Profit with Marketing Cost – Baseline Profit
Campaign Uplift Example:
=7100 – 2000
How to calculate the ROMI:
Now follow the simple formula to get the ROMI= (Campaign Uplift ÷ Marketing Cost) x 100%
Return on Marketing Investment Example:
=(5100 ÷ 2900) x 100%
=1.7586 x 100%
What is a good ROI for digital marketing?
5:1 refers to good ROI for digital marketing campaign.