Spending on ads is necessary, and often, it’s not entirely fool-proof. However, you can calculate your return on investment (ROI) to get an idea of how your allocated digital advertising budget is performing. ROI helps you figure out how profitable your marketing spend is, and to get an idea, use a test number or use the rule of thumb 10% of your advertising budget.
A good ROI means your campaign made a profit, and a negative ROI means the campaign cost more than the profit. Generally speaking, a good ROI that returns five times your investment (having an ROI of 500% or 5:1) is a good goal. Anything above is considered excellent, but do you know what your ROI is? Use our calculator to get a better idea.