Are you tired of throwing money into marketing activities without knowing if they’re paying off? Let’s talk about the one magic formula that can help you make sense of your marketing budget – the Return on Marketing Investment (ROMI).
ROMI is the ultimate performance measure that helps you calculate the net profit generated by your marketing investments. Sounds intimidating? Fear not! It’s simply the net profit from a marketing investment divided by the costs of the marketing investment, multiplied by 100.
The best part? By measuring ROMI, you’ll be able to
- Make more strategic decisions,
- Invest your marketing budget better,
- And have a better measure of profitability.
But hold up, there’s a catch. Measuring ROMI may lead you to only invest in marketing activities with high rates of return, and reject other investments that could actually increase the value of your business. So, it’s important to –
- Set a business objective,
- Focus on your targets,
- And identify metrics that go beyond the status quo.
Ready to take the guesswork out of your marketing budget? Let’s measure some ROMI!
About the Author: Esther Ilori
Esther Ilori has been a content writer since 2017 and she currently works as a digital marketing manager at WayMaker Digital.
She brings her years of experience to her current role where she is dedicated to educating and inspiring the world on how to effectively use content writing and digital marketing in various companies, careers and to achieve various goals. Links to her published articles can be found here. You can find Esther on LinkedIn, Instagram, Facebook, or Twitter.