To measure ROI (Return on Investment) for offline campaign is easier than an online campaign. Let’s say your clients invested on you 1000 USD for online marketing campaign. You have to build links among websites and social media. What’s your answer if they asked you ROI they can expect? That’s what I face in recent days. I solved it out by a mathematic calculate, but it can’t be a perfect answer.
Let’s go on to a story for example. A smartphone company is having budget about 10,000 USD for a marketing campaign in six month. Each smartphone cost 100USD. They will consider to use online channel if they can see the opportunity. Let’s say they gonna spend 1000 USD for social media and other online activities. What will be the ROI from online campaign? Here is the calculation I tried.
Marketing (overall) is 10,000 USD. Online marketing budget is 1000 USD. Expected sale volume is 10,000 smartphone which is 1,000,000 USD in price. It’s net profit. ROI value for overall campaign should based on the formula; (net profit-budget)/budget x 100 percent.
Therefore (1,000,000-10,000)/10,000 is 99. So ROI is 9900%
As online campaign budget is only 10 percent of overall budget, ROI value from online is 990%.
It’s ROI value by technical calculation. To get the exact value, you need to make a survey if people are making decision to buy smartphone by seeing articles and images online. You need to know how online content are influencing people. After only taking survey, you will get the result which will probably be like 50 out of 100 people are making decision to buy by reading news content online. Therefore your ROI value can be divided by 2. Therefore ROI is 495%. Data is powerful for marketing. Your clients will definitely will ask for it. Brave yourself. ROI and other key metric measurement are what companies will be asking for in the future.