How do you calculate ROI for a digital campaign? (calculator)

Calculate the ROI (Return On Investment) of your online ad campaign.

Campaign parameters

Period (months)
CPC (Cost-Per-Click)
$
Conversion Rate

%
Average Basket Value
$
monthentire period
Campaign budget
$
$

Results

Number of clicks12 00045 000
Number of conversions12 00045 000
Income12 000zł45 000zł
Profit12 00045 000
ROI

Losses in the event of a landing page failure

See how much your business can lose if your landing page is unavailable during the campaign.

uptimedowntimemonthentire period
100.00%
99.99%4.383 minutes
99.90%43.83 minutes
99.80%1 hour and 27.66 minutes
99.70%2 hours and 11.49 minutes
99.50%3 hours and 39.15 minutes
99.00%7 hours and 18.3 minutes
98.00%14 hours and 36.6 minutes
97.00%21 hours and 54.9 minutes
95.00%1 day, 12 hours and 31.5 minutes
90.00%3 days, 1 hour and 3 minutes

Digital campaign ROI

Monitoring and analyzing return on investment (ROI) is critical to the success of any marketing campaign. Measuring ROI allows you to see what’s effective and what you can do to enhance your outcomes.

In this short post, we’ll go through how to manage, evaluate, analyze, and optimize your digital campaign ROI, so that you can execute more effective marketing campaigns and expand your business.

What is ROI and what is its Purpose?

ROI is an abbreviation for “Return on Investment,” which is also referred to in French as “Retour sur investissement.” It is an economic formula that calculates the benefit received from corporate operations (online marketing actions). This enables you to determine the proportion of profit earned as a result of the different marketing initiatives done.

The ROI of your digital marketing is a measurement of the profits or losses of your online marketing campaign. Assessing it online helps you estimate the efficacy of your strategy. ROI is also a great marketing ally since it allows you to rationally justify marketing efforts.

How to Calculate ROI in general?

One of the primary benefits of digital marketing is that practically everything is trackable. We can trace nearly every user contact with the firm (visits, clicks, transactions, downloads, etc.) and so monitor, evaluate, and assess campaign performance via ROI. To calculate the ROI, we must consider two values: revenue and investment.

Revenues

Concrete facts about the campaign’s income to be studied. It is easy to assess the total ROI of all digital marketing efforts, as well as the ROI of individual campaigns or particular activities. To do this, it is sufficient to understand where all of the income and advantages acquired from.

Investment

Data about the campaign’s or digital marketing action’s expenditures. In other words, this is information on the overall amount of money spent on the project. It is critical to note that in order to obtain correct ROI figures, all expenses must be considered (payment tools, creative, staff costs based on the time invested, etc.).

To determine the ROI, use the following mathematical formula:

  • ROI is calculated as (Revenue – Investment) / Investment.
  • Since the ultimate result is normally expressed as a percentage, it is multiplied by 100. This results in: ROI = (Revenue – Investment) / Investment x 100%

Taking an example to understand the calculation of ROI better –

Assume you have created a marketing campaign in which you have invested a total of $5,000. At the end of the campaign, you get an income of $20,000. Therefore, by applying the formula:

(20,000 – 5,000) / 5,000 x 100% = 300%

The ROI of this fictitious campaign would be 300%. That is, for every dollar invested, a profit of 3 dollars!

How to Calculate ROI for digital campaigns?

Using this ROI calculator, you can calculate the ROI for any digital campaign as shown below:

  1. Fill out these campaign parameters:
    • Period of the campaign (in months)
    • CPC (Cost per Click)
    • Conversion Rate
    • Average Basket Value
    • Campaign budget (month and entire period)
  2. Once you’ve added in these details, you will be able to see the expected ROI and other figures, including:
    • Number of clicks
    • Number of conversions
    • Income
    • Profit for one month as well as the entire duration of the online campaign

The calculator will also help you to calculate how much money your company may lose if your landing page is inaccessible during the campaign.

To Conclude

The preceding calculations are quite simple if your objective is to enhance sales or income. If your objective is to raise brand awareness, you must consider aspects such as brand recognition and references. Using such calculations is more complex since it is difficult to put a monetary value on brand awareness. Nonetheless, ROI is a valuable marketing tool since it helps you to objectively explain marketing activities.

If you need to calculate your marketing campaign’s ROI accurately, don’t forget use the ROI calculator suggested above.

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