How ROI Can Help Your Marketing Spend

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The biggest question companies have long wanted to know about their marketing campaign is what return on investment (ROI) they are getting from the money they spend. In the vastness of the Internet where there can be multiple marketing activities deployed that question can get even harder to answer. The problem with measuring marketing ROI is that everyone talks about it, but most businesses don’t know how to do it and the truth is, most companies are still not measuring their marketing ROI correctly.

If you’re wanting to know your ROI right away use our ROI calculator, or read on for more details.


Anyone responsible for spending money on marketing to generate leads or sales should have a simple way to know if their activity is generating business. This is why return on investment (ROI) is such an important metric to measure the potency of marketing campaigns. Calculating your ROI for any given marketing strategy, whether it’s digital or traditional, can help you allocate your future budget more effectively. Let’s take a look at the ways ROI can help optimise your marketing spend.

Locating The Marketing Cost

The first step in measuring ROI is assessing the 'investment' portion. Knowing where marketing costs are spent is the only way to really know if campaigns are worth the cash and time invested. This includes, but not limited to; pay-per-click spend, display ad clicks, media spend, content production costs, outside marketing and advertising agency fees. Focusing all your marketing cost on the sale and not on other areas such as consumer research, email targeting or engagement is not a proper marketing strategy. You have to test, explore and try different venues and mediums to see what is the best return on investment for your business.

Also, consider the less expensive ways to market your business than advertising. Cross promotions with other retailers or businesses and events in the store all drive traffic but cost much less than a newspaper ad. There’s no harm in being creative and thinking outside the box.

Calculate Between Costs

close up google analytics on smartphone

Simply knowing where marketing spend is going is just the beginning. After you have discovered exactly how the marketing allocation is being spent, you can then budget the cost for things like tracking tools, paid platforms and marketing automation tools. Most marketers use Google Analytics or a similar platform to track and evaluate their digital marketing efforts and set up custom goals to track the most important events for their business.

Smart use of tracking tools like Google Analytics and marketing automation tools will not only capture the source of the lead but the touchpoints of the user that resulted in the goal completion. Capturing these touch points allows marketing to get a true perspective on the attribution of each campaign, and can ultimately give marketing insight into what campaigns are worth budgeting for.

Consider Each Marketing Campaign

Different marketing methods excel in different campaign lengths. Some methods will take a few months to reach peak effectiveness while others will hit a peak immediately. Ensure you run and measure the campaigns for the right length of time and keep track of which strategies are generating sales and revenue, now and in the long run.

Buyer’s Journey

After precisely tracking where marketing money is being invested, the next step is aligning it with the sales it generated. Combining this data can help evaluate the overall effectiveness of the marketing campaigns. In the game of ROI, the devil is in the details so always be asking, How many of the leads entered the pipeline? What type of tracks needs to be developed for those that did not enter the pipeline but are the right buyer and company profile?

The typical number of touch points it takes to close a deal varies across the board, but in almost every case it’s greater than one. Whether you use single-touch or multi-touch attribution, the branching of attribution across multiple touch points complicates the net revenue to cost ROI calculation.

In short, marketing is an essential part of most businesses and can pay many times over what it costs. It’s important to measure the effectiveness of every marketing dollar spent by evaluating the ROI. Good marketing ROI can vary greatly depending on market demand for your product or service but as long as you invest in a solid ROI evaluation process you’re on the right track for effective marketing and sales.

marketing roi calculator from vyne


To make the most of your marketing spend, however, you need to know how to measure its results. To get you started we here at VYNE created a Marketing Spend ROI Calculator. Simply add in your allocated advertising spend each month, management fee, how many leads this produces per month, how many turns into a sale, and the average sale value.

Once you have those five numbers, put them into this inbound revenue calculator and begin to see if your marketing spend is profitable.

The calculator is free and requires no download or registration.

VYNE is a digital marketing agency that speaks ROI. We partner with businesses and find ways to grow their ROI.

To find out more how VYNE can help you and your business give us a call on 0800 896 334 or book your free consultation.