Simple Mathematical Equations To Calculate How Well Your Marketing Is – Motivationgm

Simple Mathematical Equations To Calculate How Well Your Marketing Is Doing

The most common thing that I hear from business owners who are investing in marketing and advertising is "I want to put a dollar in and get x amount of dollars back"

And that is the EXACT goal of your marketing investments but if you were to ask most business owners how do they quantify what their dollar is doing...now that is where a lot of confusion comes along. 

So I decided to share a few simple calculations that may be helpful when you are looking to calculate if your marketing is working and how well. 

Now I am keeping these calculations extremely simple on purpose because I believe simple is superior and you don't want to overcomplicate things especially when you already feel nervous and overwhelmed.

Calculation #1 

Return on your advertising dollars ( Revenue/Marketing Investment =Return on Ads)

For Example, if your Revenue is $10 and your Marketing Investment is $1 then your Return on Ads would be 10! ($10/$1=10)

Calculation #2

Cost per 100% Video View (Marketing Investment/number of 100% video views)

For example, if your marketing investment is $10 and the number of 100% video views is 100 then your cost per 100% video view is 10 cents.

($10/100 video views =.10)

These are two extremely simple equations to use to see how well your marketing is performing and what the returns are on your investment. 

There are much more sophisticated formulas that you can use to calculate more specifics of campaigns etc but to keep it simple these are the two that I wanted to share with you.

A rule of thumb that I share with all of my clients is if things start to get too complicated the likelihood of you tracking your results consistently are much lower so just keep it simple. 

I would track these on a month by month basis and try to make steady improvements in your business as you move along. 

Remember if you are in this business for the long term then think about long term/sustainable improvements versus taking quick shortcuts. 

Read my blog post on how to optimize your marketing for the right thing here


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