ROI: Return on Investment
ROI quickly explained
Here’s a quick explanation of what ROI is in marketing. What does ROI stand for? How does ROI work? Still questions for your campaign? Write and or call: Contact.
ROI simply explained
Formula: How to calculate the return on investment?
- ROI = advertising revenue / advertising costs
Example ROI
If you spent 20,000 euros on Facebook ads in January and generated a total profit of 80,000 euros, the return on investment is 4 euros. This means that every euro invested generated a profit of 4 euros.
The ROI analysis shows whether an analyzed social media channel is profitable for you. After all, you certainly don’t want to spend more money on advertising in the long term than it brings in. So a higher ROI is better.
Handy for small, quick calculations:
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