Return on Investment (ROI): ROI is a performance metric used to evaluate how profitable an investment may be. It’s calculated by dividing the net profit from the investment by the initial cost, usually multiplied by 100 to produce a percentage. In digital marketing, it indicates how much profit is generated from specific marketing campaigns relative to their cost.
Importance of Return on Investment to Digital Marketing Agencies in Buffalo NY
ROI holds significance in digital marketing and SEO as it puts a number to the value brought by marketing strategies. By calculating ROI, businesses can discern which campaigns are most effective, allowing them to allocate budgets more strategically, maximize profitability, and validate the financial viability of their marketing endeavors.