What is the biggest factor affecting advertising profitability?

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Mariusz Lodyga
Marketing Strategist
6 min
When you think about creating an ad for your products and services, you always wonder what the ROI will be. I feel the same way.

In practice, advertising profitability is influenced b uae telegram data y many factors which, if well managed, can significantly “multiply” the value of invested budgets, significantly increasing the ROI for your campaigns.

So what is ROI and how do you calculate it?
ROI in marketing is calculated in a similar way to other types of investments, but it can be a bit more difficult to precisely determine due to the variety of marketing activities and the difficulties associated with measuring their effectiveness.

To calculate ROI in marketing, divide the profit generated by your marketing activities by the cost of those activities and then multiply by 100%.

how to calculate roi - advertising profitability

Source: own resources

Example:

If an advertising campaign cost PLN 20,000 and generated a profit of PLN 100,000, the ROI is PLN 100,000 / 20,000 * 100 = 500%.

Returning now to the profitability of advertising – unfortunately, how much we earn from a specific advertisement does not only depend on whether we target it well.