Question

Topic: Research/Metrics

Averrage Roi Based On Spending?

Posted by Anonymous on 125 Points
Does anyone know of a "general" average for ROI based on marketing and advertising endeavors? I'm sure that they vary among different industries and based on spending, however I am looking for just a general %. For instance, if my business is $20million, and I spend 1% ($200K) on marketing and advertising, what return should I expect? Is it safe to say that I should expect a 10% return (increase of $2million)?
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RESPONSES

  • Posted by Blaine Wilkerson on Accepted
    I would say you cannot expect anything.

    Of course you may DESIRE a return on an advertising investment. But to "expect" or "demand" a return is fictitious.

    Study your advertising carefully, pinpointing your demographics etc...then roll the dice!1 If you get too much into expectations, you set yourself up for failure and not to mention shoot the stress levels through the roof! It also creates a "robotic" atmosphere within your company.

    There are never guarantees with advertising.

    Good Luck!
  • Posted by ReadCopy on Accepted
    I wish marketing was that easy ....

    Business x Marketing Activity = More Profit

    But it isn''t, you have to work at the tactics and ensure that you have the right message to the right market using the right media, and if all goes well you should see sales leads which shoudl equate to sales revenues.

    And the bonus is if the sales process and products are profitable, then you should make a profit ... which is all anyone in business asks marketing to do :-)
  • Posted on Accepted
    The most recent studies indicate that the number one reason why CEO''s fund marketing is to increase sales.

    Your marketing budget should be tied specifically to your company''s product or service life cycle.

    Thus, your marketing budget should be tied directly to its ability to generate direct sales or qualified sales leads for the sales team.

    Using standard statistical norms to calculate a marketing budget never works well.

    Instead, calculate the increase in sales the firm is seeking and then examine the sale cycle steps and costs to create one sale. (Example: 10 leads, 3 proposals =1 sale...) Then back out the marketing costs needed to create one sale and then just prorate those costs out across your entire marketing budget based on your total revenue increase your are seeking.

  • Posted by Blaine Wilkerson on Member
    Try looking around on :

    https://searchengineformarketers.com/

    I have just found this and it has a ton of marketing info leads.

    good luck!

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