Marketing expenses
Specific marketing event. Advertising costs for each PR channel.
Multichannel marketing. Total costs, including different promotion methods. For example, a combination of offline and online marketing channels, including those designed for the long term.
Integrated Marketing Mix. Costs for integrated marketing promotion, including interaction with contractors, third parties and all types of media.
Most often, PR costs are considered as a combination of all expenses related to marketing:
internal costs: salaries of rich people data package specialists for developing each event, setting up campaigns on individual channels, etc.;
technology costs: expenses associated with access to analytics services, video and graphic editing tools;
advertising promotion costs: payment for placement on various services and channels;
comprehensive costs associated with promotion, market analysis before launching campaigns, designing a logo, packaging, publicity, etc.
The calculation result is presented as a percentage. Values above 0% are profit, the rest are losses. Next, we will figure out what ROMI should be considered good.
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It is impossible to calculate ROMI correctly without collecting statistical data. It is important to track the entire buyer cycle, from the release of advertisements to the closing of the deal. As a rule, the following types of tools are needed here:
web research: allows you to differentiate conversions by different traffic directions and not mix them up;
end-to-end analytics: demonstrates revenue from a specific channel being studied.
Note that ROMI should not be considered as an absolutely accurate indicator, since there are associated conversions. This is due to the fact that potential customers do not always immediately decide to buy. They can get to the site from different sources, including price comparison, remarketing, email newsletters with an offer to buy a deferred product, return via a saved link, etc.
Such moments reduce the accuracy of statistics. If these factors are not taken into account, the discrepancy between the actual and calculated indicator can reach 3-5% (both downwards and backwards).
What to Remember When Calculating ROMI
ROMI is an informative indicator that provides convenience for analysis and summarizing, but it should not be relied upon exclusively. Care should be taken and various criteria should be taken into account.