How to calculate ROI - Return on Investment

this is what i'm currently doing right now..
and it nearly took the whole day and week to do..
seems simple enuff...
but ROI ration doesnt add up ?
whazzup ?

Marketing campaigns are investments. And like any smart investment, they need to be measured, monitored and compared to other investments to ensure you’re spending your money wisely.

Return on investment (ROI) is a measure of the profit earned from each investment. Like the “return” you earn on your portfolio or bank account, it’s calculated as a percentage. In simple terms, the calculation is

(Profit – Investment)
Investment

ROI calculations for marketing campaigns can be complex -- you may have many variables on both the profit side and the investment (cost) side. But understanding the formula is essential if you need to produce the best possible results with your marketing investments.

With solid ROI calculations, you can focus on campaigns that deliver the greatest return. For example, if one campaign generates a 15% ROI and the other 50%, where will you invest your marketing budget next time? And if your entire marketing budget only returns 6% and the stock market returns 12%, your company can earn more profit by investing in the stock market.

ROI helps you improve your ongoing campaigns. When you tweak your offer or launch a campaign to a different list, you can compare ROI and focus on the version with the best performance.

Finally, ROI helps you justify marketing investments. In tough times, companies often slash their marketing budgets – a dangerous move since marketing is an investment to produce revenue. By focusing on ROI, you can help your company move away from the idea that marketing is a fluffy expense that can be cut when times get tough.
Best Case

Neutral Case

Worst Case
You measure and track the ROI of all of your marketing investments. Your campaigns deliver the highest possible return and you’re able to improve them over time.

Your organization understands and agrees with the choices you make because there’s solid data to support your investments.


You calculate ROI on some investments, but because it can get complex, you don’t attempt to measure it at all times.


You have a general idea of how your investments perform relative to each other, but you can’t pinpoint the exact return you’re generating. And in tough times, your budget is cut.


You don’t measure the performance of any of your investments.

In fact, marketing is viewed as a cost, not an investment at all.