Profit ÷ Investment × 100 (%)
Profit from advertising ÷ investment (advertising costs) × 100 (%)
The standard for ROI is 100 (%). The higher the number, the more cost-effective quality directors mailing lead it is, and if it is over 100%, you can judge that you are making a profit. If it is below 100%, you can judge that you are not recovering your investment (advertising budget).
ROI Formula
ROI calculation example
Let's look at how much profit is being made using an example of 1 million yen in profits and 400,000 yen in advertising costs.
1 million yen (profit) ÷ 400,000 yen (advertising expenses) × 100 (%) = 250%
This means that you will get 2.5 times the profit from your investment.
The ROI used in marketing can be calculated using the following formula:
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