In any case, there are two numbers needed to calculate the ROI of a marketing campaign:
The amount invested by the company in the production of the campaign (marketing investment)
The revenue generated by the campaign (profit or loss)
1. Marketing investment
Calculating the marketing investment is quite straightforward: simply add up all the costs, such as working time and advertising materials.
Let's take a social media campaign as an example: The marketing team has launched a Facebook campaign (either paid or organic), created a dedicated landing page for it, and set up lead capture methods.
If we want to calculate the ROI for this marketing campaign, we need to know how much the company has invested financially in it.
These include, for example, the expenditure on advertisements (for paid Facebook campaigns), social media software used , the personnel costs of the team members involved, the costs of any additional content created to promote the campaign, such as videos or images, and more.
The sum of all these costs incurred in preparing and executing the social media campaign is your marketing investment.
2. Sales
Once you have calculated your marketing investment, the next, more complicated step is calculating the revenue generated from the marketing campaign.
For the social media campaign in our example, the number of visits to the campaign' australia telegram data s landing page, the number of leads captured on the landing page, and the conversion rate for these leads must be determined.
Using the conversion rates and leads captured, you can calculate the number of conversions that resulted from the campaign. Multiply this number by the average (or median) revenue per customer acquired through the campaign to determine the total revenue of the campaign.
Conversions * Sales per customer = Total sales of the campaign
Depending on your business model, the method for calculating your revenue may vary.
If your social media campaign is aimed at raising awareness of products and encouraging purchases (for example, a Facebook advertising campaign for winter boots), the revenue generated is fairly easy to calculate.
However, many marketing campaigns are about more than just directly generating sales, for example brand awareness through media mentions, social media likes or even the frequency of content publication for the campaign.
If your social media campaign is about building brand awareness rather than driving sales, or if you're selling a service rather than a product, we recommend asking customers where they heard about your company when they make a purchase. This will give you data that you can use to calculate how many people your campaign influenced to make a purchase, so you can then attribute that revenue directly.