FAQ – Return on Investment (ROI)
Return on investment is the most important factor for success!
Return on investment is one of the most important values when measuring the success of a business, company or marketing campaign. Whenever you invest money in a project or an investment, you should always keep an eye on the return on investment as the most important factor. Profitability determines the success or failure and ultimately the survival of a target.
How do you calculate the return on investment correctly?
When calculating the return on investment, a distinction is made between different approaches, which, however, basically pursue the same calculation objective. In business administration, profit is divided by turnover and multiplied by the turnover achieved divided by the capital employed. The result is multiplied by 100 and then you get the return on investment.
How important is the return on investment for SEA?
The situation is different when you look at search engine advertising SEA. There the time factor is also present, but mostly in shorter cycles. There you have the bounce rate, the buyers and the returning visitors who become buyers a little later. The returning visitors form the medium-term foundation for a successful SEA campaign. For both marketing strategies, the KPI that determines the performance of a keyword can be used to calculate the return on investment. In both cases, we ensure a good to very good return on investment because we adapt all our measures to the needs of the customer.
What does return on investment mean for SEO?
In online marketing, calculating the return on investment is not quite so easy, because important results of an investment (e.g. in email advertising or Google AdWords campaigns) only become visible much later. This happens through returning visitors or recommendations from third parties. Nevertheless, the advertising budget used should always be considered in relation to the revenues generated, but with a little more patience. Therefore, the costs of a search engine optimization SEO can not be exactly included in the return on investment, because this work has to be considered in the long term and cannot be allocated to individual purchases. In addition, it is not possible to measure exactly which contacts have led to a contact via organic search. Unless you ask every contact.
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