Marketing ROI Calculator
Track Your Marketing Return on Investment
Marketing campaign costs are an investment in your business. When you examine the success of your marketing activities, return on investment is a key performance indicator (KPI) / marketing metric. Your goal is to recoup the amount of money you spend – and then some. Beyond a good return, your marketing efforts should also build brand awareness, gain subscribers (depending on the marketing channel), increase conversion rates and drive sales.
Measuring Marketing ROI
The basic formula for marketing ROI is marketing revenue – marketing spend / marketing spend x 100. You can take this marketing ROI formula further by considering other variables that impact net profit such as cost of goods sold (COGS) or by measuring customer lifetime value (CLV). Use the following marketing ROI calculator (basic formula) as a tool to measure the value of your marketing investment.
What’s a Good ROI?
It depends on the marketing channel! The latest response rate report from the Association of National Advertisers (ANA) estimates that direct mail can generate a marketing ROI of 112%, the highest of all marketing channels measured:
- Letter-sized envelope: 112%
- SMS: 102%
- Email marketing: 93%
- Paid search (PPC): 88%
- Social media: 81%
- Digital display ads: 79%
Contact your local Valpak marketing team to discuss your marketing strategy and determine a realistic overall ROI based on your ad spend. All of our direct mail and digital marketing solutions include performance metric tools like call tracking to accurately measure attribution and marketing ROI.