# How to Measure ROI and Maximise Your Digital Marketing Budget

Budgets are frequently limited when it comes to marketing, so you need to get the most value for your money. To make the most of your money given the growing significance of digital marketing in today’s environment, it is crucial to accurately analyse your return on investment (ROI). You can maximise your marketing budget, boost profitability, and make the most of your digital marketing efforts by knowing how to measure and improve ROI.

ROI is a crucial statistic for determining the performance of your efforts in digital marketing. ROI, which measures how much money you make from your marketing budget, should be regularly monitored in order to identify which initiatives are working best and which ones require improvement. You can identify areas of spending that are not adding value by monitoring your ROI, and you can then alter your budget accordingly.

Analytics is one of the best methods for calculating ROI. You can keep track of information like the quantity of leads or conversions by employing analytics tools. Depending on whether your company is attempting to generate leads or online sales, the calculation differs slightly. To accuraretly measure your ROI the formulas can be seen and described below.

## For online sales the ROI formula is:

ROI = (Amount of sales x sell price of product) ÷ Ad Spend.

Therefore if you spent \$1000 on ads for the month and sold 200 units of your product at \$25 each it would appear as below.

ROI = (200 x 25) ÷ 1000

ROI = 5

Therefore we can now see that for every \$1 spent you are getting \$5 back.

## For measuring leads the ROI formula changes slightly which can be seen below:

ROI = (Amount of leads x win rate % x average sales price) ÷ Ad Spend

Therefore if you spent \$1000 on ads for the month, and were able to get 20 leads, your business has an average win rate of 25%, with the average price of your service or product being \$1000 the formula would look like this.

ROI = (20 x 1000 x 0.25) ÷ 1000

ROI = 5