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    • Best Cryptos
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      • Best Crypto Winter Tokens
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      • Best Future Cryptocurrency
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      • Best Utility Tokens
      • Coins to Buy on the Dip
      • Fastest Growing Crypto
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      • Long Term Investments
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      • How to Spend Bitcoin
      • How to Spend Ethereum
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      • Earn Free Crypto
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        • Earn Free Bitcoin
        • Make Money With Crypto
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        • Aqru Review
        • Best Staking Coins
        • Crypto Interest Accounts
        • Crypto Lending Platforms
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        • Crypto Savings Accounts
        • Crypto Staking
        • Earn Interest on Bitcoin
        • Earn interest on Ethereum
        • Earn Interest on Stables
        • What is APY in Crypto?
        • Yield Farming Platforms
        • Yield Farming vs Staking
      • DeFi Crypto Guides
        • Best DeFi Apps
        • Best DeFi Interest Rates
        • Best DEX Coins
        • DAO Crypto Projects
        • DeFi Lending Platforms
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    • Buy Crypto
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    • Bitcoin Price Prediction
      • ALICE Price Prediction
      • ApeCoin Price Prediction
      • Axie Infinity Prediction
      • Battle Infinity Prediction
      • Cardano Price Prediction
      • Chia Coin Price Prediction
      • DeFi Coin Price Prediction
      • Dogecoin Price Prediction
      • Dogelon Mars Prediction
      • Ethereum Price Prediction
      • Floki Inu Price Prediction
      • Hoge Coin Price Prediction
      • Kishu Inu Price Prediction
      • LBLOCK Price Prediction
      • LUNA Price Prediction
      • Pi Coin Price Prediction
      • Polygon Price Prediction
      • SafeMoon Price Prediction
      • Samoyed Coin Prediction
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      • Stepn GMT Price Prediction
      • SXP Coin Price Prediction
      • VeChain Price Prediction
      • XRP Price Prediction
    • Best Altcoins
      • Buy Battle Infinity
      • Buy Bitcoin Cash
      • Buy Binance Coin
      • Buy Celo
      • Buy Cardano
      • Buy Cartesi
      • Buy Chiliz
      • Buy Cronos
      • Buy Dash
      • Buy EOS
      • Buy ENS
      • Buy Ethereum
      • Buy Ethereum Classic
      • Buy FTX Token
      • Buy HBAR
      • Buy IOST
      • Buy IOTA
      • Buy Litecoin
      • Buy Livepeer
      • Buy Loopring
      • Buy Lucky Block
      • Buy LUNA 2.0
      • Buy LUNC
      • Buy Neo
      • Buy Pitbull Coin
      • Buy Polkadot
      • Buy RadioCaca
      • Buy Solana
      • Buy Spark
      • Buy VeChain
      • Buy XRP
      • Buy ZCash
    • Best Crypto Exchanges
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      • Binance Referral Bonus
      • Binance vs Coinbase
      • Binance Review
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      • Bitstamp Review
      • Bitstamp Sign Up Bonus
      • Coinbase Review
      • Coinbase Sign Up Bonus
      • Crypto.com Review
      • Crypto.com Sign Up Bonus
      • Crypto.com Visa Card
      • Crypto Credit Cards
      • Crypto Tax Software
      • Margin Trading Exchanges
      • Social Trading Platforms
    • Best Meme Coins
      • Best Dog Cryptos
      • Buy Baby Doge
      • Buy Dogecoin
      • Buy Floki Inu
      • Buy Kiba Inu
      • Buy Shiba Inu
      • Buy Tamadoge
    • Best DeFi Coins
      • Buy 1inch
      • Buy Aave
      • Buy Algorand
      • Buy Ankr
      • Buy Avalanche
      • Buy Balancer
      • Buy Bancor
      • Buy Chainlink
      • Buy Compound
      • Buy Cosmos
      • Buy Curve
      • Buy DeFi Coin
      • Buy DYDX
      • Buy Fantom
      • Buy Kyber Network
      • Buy Maker
      • Buy Polygon
      • Buy Ren
      • Buy Serum
      • Buy Storj
      • Buy Sushiswap
      • Buy Tezos
      • Buy Uniswap
    • Best Web 3.0 Coins
      • Buy Basic Attention Token
      • Buy Biconomy
      • Buy Filecoin
      • Buy Theta
  • NFTs
    • How To Buy NFTs
      • Best NFT Apps
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      • Best NFT Giveaways
      • Best NFT Lawyers
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      • Best NFT Presales
      • Best NFT Wallets
      • Best Utility NFT Projects
      • Buy NFTs on Binance
      • How to Flip NFTs
      • Make Money With NFTs
    • Best Metaverse Coins
      • Buy ApeCoin
      • Buy Axie Infinity
      • Buy Decentraland
      • Buy DeFi Kingdoms
      • Buy Enjin
      • Buy Gala
      • Buy GMT
      • Buy Immutable X
      • Buy The Sandbox
    • NFT News
      • Celebrity Backed NFTs
      • Celebrity NFT Owners
      • Cheapest NFT Projects
      • Coolest NFT Projects
      • Most Expensive NFTs
      • New NFT Projects
      • NFT Calendar
      • NFT Horse Racing Projects
      • NFT Trading Card Games
      • Sport NFT Drops
    • Invest in the Metaverse
      • Best Metaverse Apps
      • Best Metaverse Games
      • How to Invest in NFTs
      • Metaverse Projects
      • Metaverse Real Estate
      • NFT Land Projects
    • Best NFTs To Buy
      • Azuki NFTs
      • CryptoPunks NFTs
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      • PolygonPunks NFTs
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      • Binance
      • Crypto.com
      • DraftKings
      • Looksrare
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      • NFT Launchpad
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      • OpenSea
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  • Stocks
    • Types of Stocks
      • Best Biotech Stocks
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      • Buy Adobe Stock
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      • Buy DWAC Stock
      • Buy eBay Stock
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      • Buy Ford Stock
      • Buy Gamestop Stock
      • Buy Hertz Stock
      • Buy Lockheed Martin Stock
      • Buy Matterport Stock
      • Buy Monday.com Stock
      • Buy Meta Stock
      • Buy Medifast Stock
      • Buy Netflix Stock
      • Buy Nike Stock
      • Buy Nikola Stock
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      • Buy Rivian Stock
      • Buy Roblox Stock
      • Buy Pfizer Stock
      • Buy SAVA Stock
      • Buy Spotify Stock
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      • Buy Upstart Stock
      • Buy XELA Stock
      • Buy Zoom Stock
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      • Invest in Stocks
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  • Trading
    • Best Trading Platforms
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      • How to Day Trade Stocks
      • How to Trade Commodities
      • How to Trade Crypto
      • How to Trade ETFs
      • How to Trade Gold
      • How to Trade NFTs
      • How to Trade Oil
      • Islamic Brokers
      • Low Margin Rate Brokers
      • Paper Trading Platforms
      • XTB Review
    • Best Forex Brokers
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      • Best Forex Signals
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      • Best Scalping Brokers
      • High Leverage Brokers
      • Low Spread Forex Brokers
    • Trading Robots
      • Algorithmic Trading
      • Bitcode AI Review
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      • Bitindex Prime Review
      • BitIQ Review
      • BitTrader Review
      • Crypto Bank Review
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      • Teslacoin Review
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      • 7Tesler Review
    • Bitcoin Robots
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      • Bitcoin Revolution Review
      • Bitcoin Rocket Review
      • Bitcoin Smarter Review
      • Bitcoin Up Review
      • BitcoinX Review
      • Bitprime Gold Review
      • BitProfit Review
      • Bit Index AI Review
      • British Bitcoin Profit
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Business 2 Community
  • Investing
      • Best Cryptos
      • Best Beginner Cryptos
      • Best Crypto Under $1
      • Best Crypto Winter Tokens
      • Best Emerging Cryptos
      • Best ERC20 Tokens
      • Best Future Cryptocurrency
      • Best Move to Earn Crypto
      • Best Utility Tokens
      • Coins to Buy on the Dip
      • Fastest Growing Crypto
      • Hottest Cryptos Right Now
      • Most Promising Cryptos
      • Next Crypto to Explode
      • Invest in Crypto
      • How to Invest in Bitcoin
      • How to Invest in DeFi
      • Long Term Investments
      • Low Market Cap Cryptos
      • Most Undervalued Cryptos
      • Penny Cryptocurrencies
      • New Cryptos
      • Best Crypto ICOs
      • Best Crypto IDOs
      • Best Crypto IEOs
      • Best Crypto STOs
      • Best Crypto Crowdsales
      • Best Crypto Presales
      • Best Crypto Private Sales
      • Buying Coins Pre Launch
      • Crypto Games
      • Best Blockchain Games
      • Best GameFi Cryptos
      • Best Gaming Crypto Coins
      • Best Play to Earn Games
      • Crypto News
      • Best Crypto Reddit
      • Best Crypto Signals
      • Crypto Tiktok Trends
      • Crypto Youtube Channels
      • Twitter Crypto Trends
      • Crypto Wallets
      • Best Cardano Wallets
      • Best DeFi Wallets
      • Best Ethereum Wallets
      • Best XRP Wallets
      • Crypto Bank Accounts
      • How to Spend Bitcoin
      • How to Spend Ethereum
      • Bitcoin Casinos
      • Best Bitcoin Gambling Sites
      • Best Crypto Lotteries
      • Bitcoin Blackjack Sites
      • Bitcoin Roulette Sites
      • Bitcoin Slots Sites
      • Ethereum Casinos
      • Earn Free Crypto
      • Best Crypto Airdrops
      • Best Crypto Faucets
      • Best Crypto Giveaways
      • Earn Free Bitcoin
      • Make Money With Crypto
      • Earn Interest on Crypto
      • Aqru Review
      • Best Staking Coins
      • Crypto Interest Accounts
      • Crypto Lending Platforms
      • Crypto Loan Sites
      • Crypto Savings Accounts
      • Crypto Staking
      • Earn Interest on Bitcoin
      • Earn interest on Ethereum
      • Earn Interest on Stables
      • What is APY in Crypto?
      • Yield Farming Platforms
      • Yield Farming vs Staking
      • DeFi Crypto Guides
      • Best DeFi Apps
      • Best DeFi Interest Rates
      • Best DEX Coins
      • DAO Crypto Projects
      • DeFi Lending Platforms
      • DeFi Staking Platforms
      • DeFi Swap Exchange
      • DeFi Yield Farming
      • Worldwide Crypto Guides
      • Best Africa Crypto Projects
      • Best Asia Crypto Projects
      • Best China Crypto Projects
      • Best Dubai Crypto Projects
      • Buy Bitcoin AU
      • Buy Bitcoin CA
      • Buy Bitcoin DE
      • Buy Bitcoin SG
      • Buy Bitcoin UAE
      • Buy Bitcoin UK
      • Buy Bitcoin ZA
      • Crypto Exchanges AU
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      • Crypto Exchanges UAE
      • Crypto Exchanges UK
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      • Bitcoin Mining Sites
      • Best Coins to Mine
      • Ethereum Mining
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      • Monero Mining
      • Crypto Marketing
      • Financial PR Agencies
      • ICO Marketing
      • Web3 Marketing
  • Cryptocurrency
      • Buy Crypto
      • Buy Bitcoin
      • Buy BTC with Apple Pay
      • Buy BTC with Credit Card
      • Buy BTC with Bank Wire
      • Buy BTC with eToro
      • Buy BTC with Paypal
      • Buy BTC with Prepaid Card
      • Bitcoin Price Prediction
      • ALICE Price Prediction
      • ApeCoin Price Prediction
      • Axie Infinity Prediction
      • Battle Infinity Prediction
      • Cardano Price Prediction
      • Chia Coin Price Prediction
      • DeFi Coin Price Prediction
      • Dogecoin Price Prediction
      • Dogelon Mars Prediction
      • Ethereum Price Prediction
      • Floki Inu Price Prediction
      • Hoge Coin Price Prediction
      • Kishu Inu Price Prediction
      • LBLOCK Price Prediction
      • LUNA Price Prediction
      • Pi Coin Price Prediction
      • Polygon Price Prediction
      • SafeMoon Price Prediction
      • Samoyed Coin Prediction
      • Shiba Inu Price Prediction
      • Stepn GMT Price Prediction
      • SXP Coin Price Prediction
      • VeChain Price Prediction
      • XRP Price Prediction
      • Best Altcoins
      • Buy Battle Infinity
      • Buy Bitcoin Cash
      • Buy Binance Coin
      • Buy Celo
      • Buy Cardano
      • Buy Cartesi
      • Buy Chiliz
      • Buy Cronos
      • Buy Dash
      • Buy EOS
      • Buy ENS
      • Buy Ethereum
      • Buy Ethereum Classic
      • Buy FTX Token
      • Buy HBAR
      • Buy IOST
      • Buy IOTA
      • Buy Litecoin
      • Buy Livepeer
      • Buy Loopring
      • Buy Lucky Block
      • Buy LUNA 2.0
      • Buy LUNC
      • Buy Neo
      • Buy Pitbull Coin
      • Buy Polkadot
      • Buy RadioCaca
      • Buy Solana
      • Buy Spark
      • Buy VeChain
      • Buy XRP
      • Buy ZCash
      • Best Crypto Exchanges
      • Best Altcoin Exchange
      • Best Metaverse Platforms
      • Best Crypto Apps
      • Best DeFi Exchange
      • Best P2P Exchange
      • Binance Referral Bonus
      • Binance vs Coinbase
      • Binance Review
      • Best Binance Alternatives
      • Best Coinbase Alternatives
      • Bitstamp Review
      • Bitstamp Sign Up Bonus
      • Coinbase Review
      • Coinbase Sign Up Bonus
      • Crypto.com Review
      • Crypto.com Sign Up Bonus
      • Crypto.com Visa Card
      • Crypto Credit Cards
      • Crypto Tax Software
      • Margin Trading Exchanges
      • Social Trading Platforms
      • Best Meme Coins
      • Best Dog Cryptos
      • Buy Baby Doge
      • Buy Dogecoin
      • Buy Floki Inu
      • Buy Kiba Inu
      • Buy Shiba Inu
      • Buy Tamadoge
      • Best DeFi Coins
      • Buy 1inch
      • Buy Aave
      • Buy Algorand
      • Buy Ankr
      • Buy Avalanche
      • Buy Balancer
      • Buy Bancor
      • Buy Chainlink
      • Buy Compound
      • Buy Cosmos
      • Buy Curve
      • Buy DeFi Coin
      • Buy DYDX
      • Buy Fantom
      • Buy Kyber Network
      • Buy Maker
      • Buy Polygon
      • Buy Ren
      • Buy Serum
      • Buy Storj
      • Buy Sushiswap
      • Buy Tezos
      • Buy Uniswap
      • Best Web 3.0 Coins
      • Buy Basic Attention Token
      • Buy Biconomy
      • Buy Filecoin
      • Buy Theta
  • NFTs
      • How To Buy NFTs
      • Best NFT Apps
      • Best NFT Games
      • Best NFT Giveaways
      • Best NFT Lawyers
      • Best NFT Lottery Sites
      • Best NFT Presales
      • Best NFT Wallets
      • Best Utility NFT Projects
      • Buy NFTs on Binance
      • How to Flip NFTs
      • Make Money With NFTs
      • Best Metaverse Coins
      • Buy ApeCoin
      • Buy Axie Infinity
      • Buy Decentraland
      • Buy DeFi Kingdoms
      • Buy Enjin
      • Buy Gala
      • Buy GMT
      • Buy Immutable X
      • Buy The Sandbox
      • NFT News
      • Celebrity Backed NFTs
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      • Cheapest NFT Projects
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      • Most Expensive NFTs
      • New NFT Projects
      • NFT Calendar
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      • Invest in the Metaverse
      • Best Metaverse Apps
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      • How to Invest in NFTs
      • Metaverse Projects
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      • NFT Land Projects
      • Best NFTs To Buy
      • Azuki NFTs
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      • Lucky Block NFTs
      • PolygonPunks NFTs
      • Prime Ape Planet NFTs
      • VeeFriends NFTs
      • World of Women NFTs
      • NFT Marketplaces
      • Binance
      • Crypto.com
      • DraftKings
      • Looksrare
      • Magic Eden
      • NFT Launchpad
      • NFT Music Platforms
      • OpenSea
      • Rarible
  • Stocks
      • Types of Stocks
      • Best Biotech Stocks
      • Best Bitcoin ETFs
      • Best Blockchain Stocks
      • Best Cannabis Stocks
      • Best Cheap Stocks
      • Best DeFi Stocks
      • Best Dividend Stocks
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      • Best Upcoming IPOs
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      • Buy Oil Stocks
      • Buy Stocks on eToro
      • Buy Stocks via Credit Card
      • Buy Stocks with PayPal
      • Invest in Stocks
      • Invest in NFT Stocks
    • Trading
        • Best Trading Platforms
        • Best Investment Apps
        • Capital.com Review
        • Copy Trading Platforms
        • Demo Accounts for Stocks
        • Day Trading Platforms UK
        • eToro Review
        • eToro Review UK
        • eToro Review ZA
        • How to Day Trade Stocks
        • How to Trade Commodities
        • How to Trade Crypto
        • How to Trade ETFs
        • How to Trade Gold
        • How to Trade NFTs
        • How to Trade Oil
        • Islamic Brokers
        • Low Margin Rate Brokers
        • Paper Trading Platforms
        • XTB Review
        • Best Forex Brokers
        • Best Forex Brokers AU
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        • Best Forex Brokers IN
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        • Best Forex Signals
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    Digital & Social⟩Social Data

    What Is ROI: A Simple Solution To Measuring Profitability

    author imageJay Leonard Last updated: 13 November 2014
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    What is ROI: A Simple Solution to Measuring Profitability

    Sometimes when evaluating your marketing campaign, you just need a quick way to tell if your ads are leading to and directly impacting the success of your business.

    The answer to this puzzle? A really cool KPI called ROI. Yeah, the marketing industry really likes acronyms.

    But this post isn’t going to be about silly English terms. It’s going to be about math, and how one simple equation can show you if your PPC campaign is a success.

    What Is It?

    ROI means “return on investment,” a way to assess the efficiency of an investment. For our purposes, it’s a way to measure the profitability of your ads. You want to know if they’re benefiting your business? This is how you find out.

    The Equation

    So, I hate math. Really I do. But the thing that’s so great about ROI is its simplicity. It’s quick. It’s easy. And it works.

    ROI = (revenue from investment – cost of investment)/ cost of investment

    ROI is presented as a percent.

    So let’s do an example.

    You brought in $200 from your recent ad campaign. The campaign cost $100 and it took $50 to make the products sold ($150 total cost). Now just plug it in:

    (200 – 150)/150 = 33.3% ROI

    ROI’s Popularity And Versatility

    With ROI, it’s easy to tell if your ads are getting the results you want. In other words, you can easily find out if your return on investment is high enough for your company’s liking.

    If your ROI is negative, it’s usually a good sign that your campaign needs work.

    You can also use ROI to compare two or more ads to see which is bringing in more bang for your buck. If one has a higher ROI than others, you may want to consider changing the lower ads to mirror the one that’s working, or experimenting with other optimization methods.

    Your ROI calculation can be altered or tweaked to fit whatever situation you want to measure the profitability of. It all depends on what you deem the two variables to be. What are the returns? What are the costs? It’s for you to decide within your use of the equation.

    For example, three different ROI calculations could define returns as ‘revenue from ads,’ but define costs as ‘cost of ads,’ ‘costs of making products sold,’ or a combination of the two. There is no one right way to do it.

    With such flexibility, ROI rocks as a simple, quick, and functional tool to pull out of your KPI tool box.

    Complications

    ROI does a great job of telling you what the profitability of an investment is, but not why it’s at that level. This requires you to do a little more work to figure out the ‘why’ yourself.

    You still need to analyze the data. That number tells you what your ROI is, but not why it’s that specific percentage, or how to improve it. If your ROI skyrockets one day, you definitely want that to happen again. But first you have to figure out what made it jump so much so you can try to repeat it.

    Limitations

    The simplicity of ROI does lead to a few weakness.

    When calculating ROI for a future investment, you’re just making predictions.

    Let’s say you’re planning an ad campaign. You predict that it will cost $1,000 and bring in $2,500, giving you a 150% ROI. That sounds good, so you launch the campaign. But then the campaign only ends up bringing in $1,100. Or maybe it ends up costing a lot more than you’d thought it would.

    ROI also only measures financial profitability. It doesn’t factor in other benefits, such as brand exposure.

    So remember, when testing your PPC campaign, it’s still a good idea to check other KPIs such as ad impressions and click-through rate (CTR).

    Pay Attention To Conversions

    When using ROI as a KPI for PPC (again, with the acronyms), you’ll need to be able to see what revenue is coming from your ads.

    A way to do this is by tracking conversions. These actions can be anything from buying something to filling out a form on a landing page. You can use Google Analytics goals or another tool to track conversions.

    Quick Answers

    Want to know if you’re profiting from an investment? ROI will show you if you’re getting more out than you’re putting in, and vice versa.

    For any investment, it’s a good idea to calculate your ROI to see if your company will benefit from it.

    Trust me, I rarely speak highly of math, but ROI has won my heart with its shining clarity and oh so sweet simplicity.

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      This article originally appeared on eZanga and has been republished with permission.
    Find out how to syndicate your content with B2C


    author image

    Author: Jay Leonard

    Jay is a UK-based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. Jay has a great deal of hands-on experience in analysing financial markets and performing technical analysis. Jay is currently focusing on the institutional adoption of cryptocurrency and what it means for the future of

    … View full profile ›


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