Post by santo77885 on Feb 18, 2024 10:38:23 GMT
Profitability metrics – payback, profit, return on investment. The return on investment can be calculated using the basic formula: ROMI = (profit - expenses) / investment * 100% For example, we divide the difference between the profit received from an advertising campaign and the costs of launching it by the total costs. The result is multiplied by 100%. The ROMI calculation can be interpreted as follows: The result is less than 100% - investments in marketing, advertising or the project did not pay off.
There can be many reasons for this: the wrong niche was chosen, incorrect Mobile Phone Number forecasts, etc. to be reconsidered. The indicator is above 100% - the investment has paid off and is generating income from above. The higher the indicator, the more effective the advertising campaign is considered. Equal to 100%. This is the break-even point of advertising activity. The company returned the investment, but did not receive any additional income.
Taking into account the expenses of the enterprise, this situation is considered unprofitable, since the formula does not take into account all business indicators. Let’s give an example of lead generation in the apartment renovation industry. In a month, with the help of advertising, an entrepreneur receives 100 leads. 30 out of 100 people order apartment measurements to calculate the cost of repairs, and 10 people sign a contract for repair work and make payment. The average bill is 450,000 rubles, profitability is 15%.
There can be many reasons for this: the wrong niche was chosen, incorrect Mobile Phone Number forecasts, etc. to be reconsidered. The indicator is above 100% - the investment has paid off and is generating income from above. The higher the indicator, the more effective the advertising campaign is considered. Equal to 100%. This is the break-even point of advertising activity. The company returned the investment, but did not receive any additional income.
Taking into account the expenses of the enterprise, this situation is considered unprofitable, since the formula does not take into account all business indicators. Let’s give an example of lead generation in the apartment renovation industry. In a month, with the help of advertising, an entrepreneur receives 100 leads. 30 out of 100 people order apartment measurements to calculate the cost of repairs, and 10 people sign a contract for repair work and make payment. The average bill is 450,000 rubles, profitability is 15%.