Understanding how to calculate marketing ROI is essential for businesses in Cape Town looking to maximize their advertising spend. By effectively measuring the return on investment (ROI) of your marketing efforts, you can make informed decisions that drive better business outcomes. This guide will walk you through the necessary steps and methodologies to calculate your marketing ROI accurately.

What is Marketing ROI?

Marketing ROI, or Return on Investment, is a metric that helps businesses evaluate the effectiveness of their marketing campaigns. It measures the revenue generated from marketing activities against the costs incurred in those activities. A positive ROI means your marketing efforts are profitable, while a negative ROI indicates losses.