How do I calculate advertising ROI?
An example of an AI chatbot conversation about calculating advertising ROI.
How do I calculate advertising ROI?
To calculate advertising ROI, use the formula: (Net Profit / Cost of Advertising) x 100.
Can you explain what net profit means in this context?
Net profit is the total revenue from your advertising minus the total costs associated with it.
What if my advertising costs are higher than the revenue?
If your advertising costs exceed revenue, your ROI will be negative, indicating a loss.
Are there any tools to help me calculate this easily?
Yes, there are many online ROI calculators and marketing analytics tools that can simplify this process.
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