What is ROI in Digital Marketing and How Much ROI is Good?
What is ROI in Digital Marketing? ROI stands for Return on Investment. It’s a way to measure how much profit you made from your marketing efforts compared to how much you spent. In simple words: “If you spend money on marketing, ROI tells you if that money brought in more money.” How is ROI Calculated? Here’s a basic formula: ROI = (Net Profit from Marketing – Marketing Cost) / Marketing Cost × 100 For example: If you spent ₹10,000 on a Facebook ad and earned ₹30,000 in sales from it, your ROI would be: 👉 (30,000 – 10,000) / 10,000 × 100 = 200% ROI That means you made 2 times the money you invested! How Much ROI is Considered Good in Digital Marketing? This depends on your industry, product, and marketing goals. But generally: 100% ROI means you doubled your money – that’s a good result. 300-500% ROI is excellent – it shows your campaign is highly effective. Below 100% might mean your strategy needs improvement. For example: E-commerce businesses often aim for 200-300% ROI. Service-b...