How to calculate marketing campaign ROI for small business?
For a small business, every dollar spent on marketing needs to work hard. Knowing whether your campaigns are generating profit or just burning cash is crucial for survival and growth. That’s where Marketing Campaign ROI (Return on Investment) comes in.
Calculating ROI isn’t just about simple arithmetic; it’s about connecting your marketing efforts directly to your bottom line. Here’s a step-by-step guide for small businesses on how to measure and interpret their marketing ROI.
Step 1: Define Your Total Campaign Costs
The first step is to accurately capture all expenses related to the marketing campaign. This goes beyond the direct ad spend.
| Cost Category | Examples |
| Direct Spend | Advertising budget (Google Ads, Facebook, print, radio), software subscriptions used for the campaign (e.g., email service provider). |
| Creative Costs | Fees paid to a graphic designer, photographer, copywriter, or video editor. |
| Time/Labor Costs | The hourly wage and time spent by your team (or yourself) |