For a large majority of brands with an Internet presence, the creation of marketing strategies in online media is essential to boost your business in the digital age . Although many have already overcome the challenge of digitization and are used to creating all kinds of online campaigns, it is necessary create a media plan to accurately assess whether the benefits obtained guarantee the investment made . This is where ROI comes into play, a value to take into account to improve the performance of any business. ¿You don’t know what ROI is ? Don’t worry, this article is going to explain it to you.
What is ROI
The ROI or “Return On Investment” is a parameter that determines the success achieved by a certain campaign , in this case in online media. It is incorporated into digital marketing strategies, to check return on investment and thus measure the efficiency index of our actions. There are several ways to measure ROI, but the most common is to use the following formula:
ROI = (profit – investment) / investment
If the result is 1, it means that we have obtained a profit of 100% or what is the same, for every euro we earn 1. From here, we guide you with the following example:
ROI = (€ 5,000 profit – € 1,500 investment) / € 1,500 investment = € 3
This means a return of 300% or a profit of € 3 for every euro invested.
How to improve ROI
Now that we know what ROI is, let’s show you how to improve it to get the most out of your online campaigns . First of all, we must pose a series of objectives . These must be realistic and for this we must do a market study . In this way, we value our possibilities within the sector, based on various factors such as the ability to reach our target audiences, level of competition, demographics, habits, etc.
The media planning is decisive to know what resources do we have and which ones we need to be successful in our campaigns. Based on our financial resources, we must assess the need to implement new technologies Y specialized work teams . In this way, our investment in online campaigns will be reinforced and our ROI will grow as we mature our strategies.
And if we talk about improving the ROI of our online campaigns, it is necessary to have precise tools for measuring results . Thanks to them, it is possible to understand the success or failure of our actions. The objective of an exhaustive analysis of our campaigns is none other than optimize our strategies to create valuable, accurate and appropriate content for our target audiences.
Having clear what is ROI , how to improve it and the importance it has for our online campaigns, we have the tools to carry out a safe investment , with the tranquility of know that we will obtain the desired benefits . We hope we have helped you successfully plan your future digital strategies . Don’t get left behind, it’s time to get going.