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ROI-focused Marketing – How Does It Work?

Swapan Kumar Manna
Swapan Kumar Manna
Swapan Kumar Manna is the Founder and CEO of Oneskai. He is an expert in Digital Strategy, marketing, brand building and helps brands to transform digitally for the future.

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After you set out the campaign for your product and increase its reach to customers, it is important that you view how much return you have made in the process. 

Marketing is a strategy that increases the accessibility of your product. Therefore, monitoring the return on investment and seeing the company’s sales is crucial. This will help them to understand the competency of the strategy.   

Similarly, ROI in marketing refers to the justification for marketing spend and budget allocation for ongoing and future campaigns. Thus, we can say the metrics measure the company’s progress in the market. 

To know more about ROI, let’s shift to the next section – 

How To Use ROI In Marketing?

At the company, ROI is justified by the amount the company spends in the market and how it has returned it has made in terms of revenue and sales. Therefore, marketing departments view ROI from – 

Justify Marketing Spend 

This means you must ask your executives for the budget to create a beautiful marketing campaign. 

That is why the first step is to convince the people sitting at your top about the campaign you want to create and the money you wish for that.  

For this, you can use ROI metrics to gain the trust of executives and show them the progress you made. 

Distributing Marketing Budget 

After analyzing the ROI metrics, companies focus on distributing the budget for each section, whether online or offline. As per the return, companies will allocate their budget for each team. 

For example, suppose the last marketing campaign brought less returns from the offline business. Therefore, the marketing campaign will think of increasing its budget for offline marketing to gain more returns from the offline stores.  

Most companies follow this pattern to maintain an omnichannel presence in the market. Still, if you see issues in measuring the ROI, then you can visit the website of Digitro, an ROI-focused marketing agency

They will assist you in measuring ROI in your marketing campaigns and offer you better suggestions for future marketing plans.   

Setting Baselines For Future 

The last part of ROI is to measure it properly so that the marketers can view the returns and investments made by the company to boost its revenue and sales. 

It is necessary to measure the ROI correctly, as it will help them manage the marketing campaigns for the future. The returns from the marketing part will help the company lay the foundation for future marketing campaigns. 

Thus, by laying the baseline, they can view the company’s success and progress in its ad campaign or individual marketing.  

How To Measure ROI In Marketing?

There is a process by which companies measure the marketing returns they make during the campaigns. It often refers to sales and revenue increasing amidst the marketing process. 

Here is how you can measure it – 

Marketing cost is the money businesses spend on advertising and promotions. It is the money spent on increasing awareness regarding the product or service. 

It is measured through –

Sales Growth – Money spent on Marketing = Marketing ROI

It refers to the company’s sales growth, which is subtracted from the marketing budget to view the gross profit and loss made in the market – thus, giving you an understanding of the total revenue earned from the investment. 

Another way to measure the marketing ROI is – 

Sales growth – Organic sales growth – Marketing cost = Marketing ROI

This will further help you calculate the marketing ROI and help you progress in the market and your ad campaigns.  

Few Terms To Know 

There are a few terms you should know that will help you see the money you made from the marketing campaigns – 

  • Total revenue refers to the company’s overall income from sales. 
  • Gross Profit is usually measured from the money that comes into the company and the money spent on marketing efforts. It is inclusive of business taxes and additional expenses. 
  • Net profit refers to the earnings made after paying various taxes and additional expenses, which means Gross profit – other expenses.   


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