Today’s businesses spend a lot on marketing – over $2.1 trillion worldwide, according to HBR. But how do we know if all that money is being well-spent? That’s where return on investment (ROI) analysis comes in.
In an ideal world, calculating your marketing ROI should tell you what’s working, what isn’t, and where you should focus your marketing efforts in the future. But that can be easier said than done – according to marketing expert Neil Patel, less than a third of marketing executives feel that they can effectively evaluate the ROI of each channel they use.
In this article, we’ll take a look at how to calculate ROI, what makes marketing ROI (MROI) a little tricky to figure out, and what you can do to improve your results.