What to do next
Show the working, step by step
Where I used this
A winter brand campaign at Praava Health lifted footfall by about 190%, with Beauty & Wellness up 68% year on year.
Read the case: 2022–23 winter brand campaign: repositioning & driving footfall →Everything is calculated in your browser. Nothing you type is sent or stored.
Measure the increment, not the total
Marketing ROI should count only the sales the activity caused. Comparing against a baseline, a hold-out region or a matched period strips out what would have happened anyway. And it should use profit, not revenue, otherwise every campaign looks like a winner.
Short-term ROI also misses most of what brand advertising does. Use it for activation, and pair it with brand tracking for brand building. The measurement plan builder helps set that up.
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Questions
How do you calculate marketing ROI?
Take the incremental revenue the campaign caused, multiply by gross margin, subtract the marketing cost, and divide by the marketing cost.
How do I find the baseline?
Use a comparable period without the campaign, a hold-out region or audience, or a forecast of expected sales. The better the baseline, the more trustworthy the ROI.
Why is my ROI negative when revenue went up?
Because revenue growth may have been smaller than the profit needed to cover the cost, or much of it would have happened anyway.