Digital marketingChoosing5 min read
How to measure marketing ROI without the complexity
A simple equation shows whether marketing is actually returning money or just draining it — no complicated maths required.
A simple equation shows whether marketing is actually returning money or just draining it — no complex calculations or specialised tools needed.
The equation
ROI = (profit generated by marketing minus its cost) divided by the cost. A positive result means marketing is returning more than you spend.
ROI is not a complicated number. It is a simple question: "for every pound I spent, how much came back?"
Common questions
- How do I calculate profit, not just sales?
- Subtract the cost of the product or service itself from the sales value first, then subtract the marketing cost — what remains is the real profit.
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