FREE ROI REPORT TEMPLATE

The standard formula used to calculate ROI in marketing is performed by taking the product line (PL) and then subtracting the marketing cost. Once you arrive at a figure, you'll divide that number by the cost of marketing. 

(PL-Marketing)/Marketing costs = ROI

Keep in mind that this is an essential figure, and depending on the industry and the organic growth, the calculation can vary. Some things to keep in mind-affecting ROI can include the following.

• Time period
• Growth
• Initial ROI
• Soft metrics

If you want to find growth statistics over time or break down marketing ROI by specific function, you'll need to calculate separately and subtract the percentage of organic growth over the year. 

Marketing is one of the most significant parts of developing a company offering a product or service. This branch of the business is responsible for growing the brand and connecting with potential customers. 

They also handle the curation of reputation and overall reach across multiple platforms. The many ways marketing connects are accomplished with a complex series of strategies. Each strategy needs a specific investment to make things happen. 

So, how do companies know if their return on investment, or ROI, is for each campaign? Simply put, there's standard, and some not-so-standard marketing calculations used to determine ROI.

There are many metrics to measure and track when you want to get an overall picture of ROI and how effective the campaign is at the moment and over time. Keep these metrics in mind to get a complete picture. 

1. Traffic

You'll want to find out how well your marketing efforts are working across multiple channels by monitoring traffic. If you have a CRM or use an analytics tool, you can filter these details for all marketing campaigns. Some channels to focus on include the following. 

• Social media
• Website
• PPC ads
• Blog posts
• Embedded links

Remember that traffic alone isn't going to provide accurate ROI, but it helps you determine where you draw attention to marketing efforts. 

2. Conversion Rate

Aside from measuring the traffic, you'll need to gauge the effectiveness of driving traffic by knowing a conversion rate. You need to know how much of the traffic converts. 

Some marketing specialists use the conversion rate rather than the traffic count. Remember that even though a particular channel drives more traffic, it might not create conversions. 

3. Ad Expenditure Performance

If you want to know the ROI of your ad campaign, you'll simply need to know the cost of a particular campaign. Divide the total revenue for that individual campaign and decide it by the cost of the campaign. 

This figure is very telling and should find its way into each company's template to find ROI for marketing.

4. Landing Page Metrics

Any company with a marketing department knows they need to track their landing page activity or metrics accurately. This is one of the key determining factors to telling how much ROI you're seeing. 

One metric to measure is the conversion assists. When people click on a call to action metric, the software compiles that data to figure CTA link click averages. This metric helps determine how much ROI is evident from content posted to third-party sites, blogs, and other media content. 

Measuring the time spent on a page is also a factor in figuring interest in specific marketing content. If the visitor spends plenty of time reading rather than scanning, it's a good sign that the investment in that content is beneficial. 

The bounce rate is the number of page visitors who leave after viewing a single page on a site. If the bounce rate is high, it's clear to change the approach and the posted content to better connect with visitors.

5. Keyword Effectiveness and Ranking

Keywords are an essential part of having a better chance of landing on the top of a search engine results page or SERP. A top SERP result will provide higher traffic and more lead conversions. It's worth investing in an approach that uses highly effective keywords. 

Some software helps provide clear best practices for keywords related to the brand, niche, and campaign. Most marketing companies use them to help streamline their approach and make content more effective.

The average marketing report is pretty cut and dry. It takes all the most important features regarding a marketing campaign and outlines them clearly and concisely. They help each person on the team get a clear visual of performance and ROI. 

Consider using this template to help create a usable report for presentations or updates for each member of your team.

• You need to outline the marketing strategy used currently and any mentions of recent changes or focus. 

• You'll also want to include a complete breakdown of market research in both a graph form and a written summary for each section or graph. 

• Included promotions to help the team keep current. 

• The campaign goal is always a feature to share with everyone to follow along and see how close they get as the campaign unfolds.

• Include a complete breakdown of the email campaigns and how many leads or conversions were attained. 

Ad campaign details are somewhat complex and might need their section complete with graphs and precise details. 

Always include a projected outcome to help gear up the team for reaching the goal and help them focus on key areas.

Although reports vary depending on who prepares them, be sure to include these details or any additional details about a specific campaign.

Determining the ROI for a marketing campaign isn't difficult, but certain figures and metrics are necessary to get a complete picture. Prepare these reports quarterly and yearly to give each team member an accurate overview of total ROI and effectiveness. 

It helps to include features and graphs to help make the information digestible and relatable. Try to use analytics with plenty of metrics to keep posted on figures and progress daily and over time.