“Return On Investment” metric is the most basic marketing metric that allows you to plan the progress of your brand in the fastest way and easily shows how much turnover you get in return for your advertising investment. While this ratio may decrease to 1:2 levels in brands that do not have a good organic mass, that are just starting out or that make too much advertising investment, it can increase to 1:50 in brands that have a strong organic mass and have aggressive branding activities. Of course, in the X:Y ratio mentioned here; X is your investment and Y is your turnover. E.g; If the turnover of a brand with a daily advertising investment of 1.000€ is 10.000€, its ROI is 1:10. Of course, you can look at the ROI in general, or you can look at the advertising channel in particular. E.g; Your Google Ads goal is 1:6, your Meta Ads goal is 1:10, and your overall ROI goal is 1:8 if you’re investing equally in both channels. You can contact us to get more information and learn how to determine and increase your ROI level for your brand😎
*The ROI we are talking about here is expressed in its simplest form. Actually; While ROI = Profit(Revenue-Cost) / Cost x 100 is calculated with the formula, it is calculated with the Revenue / Cost formula for clarity. ROI is confused with Return On Advertising Spend (ROAS) a lot, in fact, the ROAS metric is used to look at the returns of advertising channels, but to calculate ROAS and see the results, it is necessary to create a continuous report. They can proceed with the ROI calculation and get their detailed ROI and ROAS at the end of the month. Finally, it is calculated with the formula ROAS = Revenue / Cost x 100.
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