Return on Investment (ROI)
Return On Investment (ROI) is the relationship between the total amount you spend and the total amount you earn from a certain internet marketing campaign.
If you are doing any online marketing campaign, then Return On Investment (ROI) is the most important measurement to estimate your success and the one metric that you must work hard on to improve over time.
Generally speaking, Return On Investment (ROI) is a performance measurement used to evaluate the efficiency of an investment and to compare the efficiency of one investment to the other or over a certain period of time.
Return on investment is a very popular metric due to its versatility and simplicity. That is, if an investment does not have a reasonable positive ROI, or if there are other opportunities with a higher ROI, then this investment should not be done. Return On Investment (ROI) is the final measurement of success for any advertising campaign.
How To Calculate your Return On Investment (ROI)?
Return On Investment (ROI) for any advertising campaign is very simple to calculate. There are only two variations in the calculation formula:
1 – Total cost of advertising campaign including all expenses related to this specific campaign
2 – Net Profit of this specific advertising campaign.
The Net Profit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.
Why should you constantly monitor your Return On Investment (ROI)?
Constant monitoring of your Return On Investment (ROI) either daily, weekly or both will guarantee 5 vital goals
1. To ensure that you are not losing money on any advertising campaign on a daily or weekly basis.
2. To detect any sudden decrease in the performance of any campaign and to take necessary actions to put it back on track.
3. To detect any sudden improvement in the performance of any campaign and to take necessary steps to exploit the situation for your advantage.
4. To assess the effect of changing different elements of the campaign to keep the best elements as in split testing and other testing methods.
5. To detect if the campaign is achieving its goals or falling short.
How To Increase Your Return On Investment?
The two most important factors to improve your Return On Investment (ROI) are:
1 – Professional Search Engine Optimization.
2 – Website Conversion Rate Optimization.
First: Website Search Engine Optimization
Search Engine Optimization is one of the best internet marketing strategies to improve your Return On Investment. SEO if done properly will bring your pages to dominoqq the 1st pages of Google, Yahoo, Bing and other major search engines. This will simply give you much more exposure for a long period of time.
Once the initial cost of Search Engine Optimization is paid, you do not need to pay much money to keep your publicity or exposure on the internet.
Other traditional online and off line advertisements require continuous payment to keep your ads running. These payments accumulate to a huge amount of money over time that will far exceed the total cost of Search Engine Optimization.