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Working out your ROMI using the formula helps you to measure the return on your investments in marketing. This is quite an important part of any marketing strategy as you need to know your ROMI to enable you to enhance your business.

HOLD ON – What Exactly Is ROMI?

ROMI stands for Return on Marketing Investment. This metric shows how cost-effective your marketing investments are. You’ll see how well your Social Media ads, your SEO (Search Engine Optimisation) as well as emails, and blog posts actually pay off. 

Please remember, though, that measuring your Return On Marketing Investment only takes marketing expenses into account. It does not consider factors like production costs, payroll, or rent.

Whatever it is that you and your business are promoting, you most likely advertise on Facebook and Instagram and spend your money on Google Ads, right?! You may also send emails to the subscribers on your database to maintain your relationships. 

What cannect digital can do for you is to use the ROMI formula to see which of these channels are the most cost-effective and which are not. 

Why should we be calculating your ROMI?

The purpose of the ROMI is to measure how marketing investments influence your revenue. Using the ROMI formula, you can evaluate which digital promotional tools are making you a profit and which are not, bearing in mind that the rule of thumb for calculating  your ROMI should be a 25x return, so, for every Rand you spend you should get back R25 in revenue.

When you see how much you allocate to the different advertising platforms and the revenue each of these generates, then, you are able to rethink your budget, put your best foot forward and determine the most cost-effective campaigns.

The ROMI formula (There is NOT just one way!)

Each and every business calculates their ROMI in different ways; what it depends on is aimed at what YOU specifically want to know or find out.

Using the digital marketing tools at our disposal and our Google Analytics, we can obtain the data we need to calculate your ROMI.