Return on investment (ROI) is just as important as knowing your profit from your marketing activities, whether this be traditional, event or digital.

It is one of the areas we discuss a lot within our network and with our clients; on the importance of knowing what your return has been from your current marketing activity. Whether this be placing on an event for your clients or the public. To placing a marketing campaign together for your business in a digital or non-digital form.

As, did you know that your ROI can be profit as well as loss in the business as it stands for your overall return on investment; so, it’s a reflective exercise to see what your current investment has resulted in from marketing and your activities in the business.

Return on investment also does not have to be just monetary, it can also be looking at your time investment too. Plus, it can help when you are reviewing your market and competition too, to understand your own strengths, weaknesses, opportunities, and threats.

So, how is best to calculate your return (ROI)?

The answer is simple; when looking at your ROI we share with our network that you should not just do the traditional sum of the following equation, which is:

‘Gross Profit = Gross Revenue – Cost of Goods Sold’

But actually calculate both time and money in comparison to what your hourly rate would be and then subtract the cost of goods sold. An example of this can be found below in an event ROI:

‘Gross Profit (Event Fee + Time) – Cost of Goods = ROI’

In terms of marketing in general whether this be digital or none; your return can be in many other forms due to brand awareness and exposure that marketing campaigns can bring whether this be a lead generation exercise or to raise the profile of the business.

As, ROI calculations for marketing campaigns can be complex due to many variables on both the profit side and the investment side. But understanding the formula best provides you with the correct information, to know what area is best to invest within for your marketing that brings results.

We have a saying within FAB and that is ‘knowledge is power’ and by know how to calculate your ROI within business from your current activities within marketing and events; can only mean you will receive the best return long terms of you will under what brings a return on investment into your business and equally what does not.

As, investment with your marketing or events is never a negative as everything is a learning opportunity if you measure the return after each activity.

To learn more about events, marketing, and business within fab please check out our further articles here and thank you for reading our latest blog/article.


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