How to Measure ROI and Should You Calculate ROMI
Posted: Mon Jan 06, 2025 6:03 am
Alexey Tishchenko, CEO of the B2B marketing outsourcing service Markout, spoke about the specifics of marketing in industrial and B2B markets.
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Content
What is the problem with ROMI?
ROMI and the specifics of industrial and B2B markets
Should ROMI be used in industrial marketing at all?
What can affect the decrease in ROMI
Reluctance to invest in marketing or stopping investments due to false expectations of quick returns
Allocating insufficient budget for marketing or cutting it in the process
Increasing the advertising budget at the expense of other marketing expenses
Mistakes in working with a team that deals with marketing
What is the problem with ROMI?
When it comes to how to evaluate the results of using brazil whatsapp phone number marketing and advertising in a company, any specialist will immediately say that you need to calculate the ROMI (Return on Marketing Investment) indicator.
It is known that it shows the return on investment in each specific promotion channel, be it contextual advertising, calling clients from a database using a call center, holding a webinar, etc. This makes it clear which channel is most profitable to invest money in, and which one should be abandoned.
For example, you sell bicycles worth 15,000 rubles. You invest 10,000 rubles in contextual advertising. The buyer sees the ad on request, follows the link and immediately orders a bicycle on your website. Advertising brings 10 clients per month or 150,000 rubles, of which 50,000 is your net profit.
It turns out that for 1 ruble of investment in advertising you received 5 rubles of profit, which means the investment paid off. If there are several promotion channels at once, then all that remains is to balance between them, constantly calculating ROMI and transferring the budget to the channel where it is higher.
It's simple, but only in theory. In practice, even in B2C marketing, there are factors that can greatly distort ROMI measurement.
sorp.ae
How can a business independently research its audience and promote its products and services on the Internet? We tell you in the course on Internet marketing .
Firstly, it is not always possible to track from which channel the client came. Secondly, in the cost structure for the same contextual advertising or another channel, it is necessary to take into account the cost of not only the launch, but also the work on its setup.
If we go back to the example with bicycles and say that in fact we spend not 10,000, but 15,000 rubles on advertising, then the ROMI value will be different.
In industrial marketing, these complexities must be multiplied by two.
Subscribe to RB.RU in Telegram
Content
What is the problem with ROMI?
ROMI and the specifics of industrial and B2B markets
Should ROMI be used in industrial marketing at all?
What can affect the decrease in ROMI
Reluctance to invest in marketing or stopping investments due to false expectations of quick returns
Allocating insufficient budget for marketing or cutting it in the process
Increasing the advertising budget at the expense of other marketing expenses
Mistakes in working with a team that deals with marketing
What is the problem with ROMI?
When it comes to how to evaluate the results of using brazil whatsapp phone number marketing and advertising in a company, any specialist will immediately say that you need to calculate the ROMI (Return on Marketing Investment) indicator.
It is known that it shows the return on investment in each specific promotion channel, be it contextual advertising, calling clients from a database using a call center, holding a webinar, etc. This makes it clear which channel is most profitable to invest money in, and which one should be abandoned.
For example, you sell bicycles worth 15,000 rubles. You invest 10,000 rubles in contextual advertising. The buyer sees the ad on request, follows the link and immediately orders a bicycle on your website. Advertising brings 10 clients per month or 150,000 rubles, of which 50,000 is your net profit.
It turns out that for 1 ruble of investment in advertising you received 5 rubles of profit, which means the investment paid off. If there are several promotion channels at once, then all that remains is to balance between them, constantly calculating ROMI and transferring the budget to the channel where it is higher.
It's simple, but only in theory. In practice, even in B2C marketing, there are factors that can greatly distort ROMI measurement.
sorp.ae
How can a business independently research its audience and promote its products and services on the Internet? We tell you in the course on Internet marketing .
Firstly, it is not always possible to track from which channel the client came. Secondly, in the cost structure for the same contextual advertising or another channel, it is necessary to take into account the cost of not only the launch, but also the work on its setup.
If we go back to the example with bicycles and say that in fact we spend not 10,000, but 15,000 rubles on advertising, then the ROMI value will be different.
In industrial marketing, these complexities must be multiplied by two.