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RETURN ON INVESTMENT (ROI) ANALYSIS FOR DIGITAL CAMPAIGNS WWW.DIGITALDRIVE360.COM
Understanding ROI: A favourable digital marketing ROI is typically considered when the ratio is at least 5:1, indicating that for every $1 spent, $5 is generated in profit. Calculation Formula: ROI is calculated using the formula: ROI = (Net Profit/Total Cost) * 100. This formula considers both the net profit and the total cost of the campaign. Metrics to Measure: To assess ROI comprehensively, various digital marketing metrics are essential. Some key metrics include customer acquisition cost (CAC), conversion rate, and customer lifetime value (CLV). Tracking Channels: Determining ROI involves tracking various channels within the overall digital marketing strategy. This requires monitoring the performance of different platforms and campaigns. Integration with Business Line Calculation: A basic method to calculate the ROI of a marketing campaign is to integrate it into the overall business line calculation, considering sales growth. WWW.DIGITALDRIVE360.COM
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