ROI Calculator – Calculate Your Return on Investment

Calculate Your ROI with Our Custom Marketing ROI Calculator

Simply input the cost of your campaigns, the number of leads generated, and any associated revenue. You can also add multiple campaigns, allowing you to compare performance across different marketing channels. The calculator automatically provides insights into your ROI (Return on Investment), CPA (Cost per Acquisition), and Cost per Customer for each channel.

Additionally, you’ll be able to input any extra costs—such as agency fees or production costs—so you can accurately assess the full investment in each campaign. Once calculated, the tool provides you with an overall summary, highlighting whether your results are above, below, or in line with typical industry benchmarks, and offers actionable suggestions for improvement.

This tool is perfect for business owners and marketing managers who want to get a detailed understanding of how well their budget is being spent.

 

 

The Role of Marketing Channels

Creating Demand, Capturing Traffic, and Supporting the Customer Journey

When running a marketing campaign, business owners often focus on metrics like CPA (cost-per-acquisition) and ROI (return on investment). While these figures are important, they don’t provide the complete picture. Different marketing channels serve different purposes—some generate demand for your business, others capture traffic from those already searching for your services, and some help guide customers through their purchasing journey.

If you only focus on immediate results, like a low CPA, you may overlook opportunities for long-term growth. It’s also important to allow platforms like Google Ads and Facebook Ads time to adjust and learn. Their algorithms need time to optimise for the best performance, and cutting campaigns too early could harm your business in the long run.

 

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Key Marketing Channels and Their Roles

Here are the key marketing channels and how they can help your business grow.

1. Paid Search (Google Ads, Bing Ads)

Paid search is ideal for capturing reactive traffic — people who are already searching for your products or services. Businesses often use Search ads to push their brand to the top of the page, regardless of their SEO position, because Google Ads always takes a proportion of search traffic before SEO listings are even seen. The issues most businesses have with this is making sure it’s cost-effective and they’re spending money on only the terms which offer commercial value, as SEO and other marketing channels are cheaper at creating demand, often with much broader reach for the price too.

Not all search engines are the same. Google has dominated search for years, leading many businesses to focus all their budgets on Google Ads. However, this means missing out on the opportunities that Bing and other Microsoft-owned search engines offer. It’s also worth noting that users of Microsoft’s search engines tend to be older, more affluent, and often business-oriented.

Search Engine	Share of UK Search (%)
Google	94.4%
Bing	3.33%
Yahoo!	1.26%
DuckDuckGo	0.55%
Ecosia	0.2%
YANDEX	0.16%

 

2. Display Ads (Google Display Network)

Display ads are designed to raise awareness and create demand, targeting people who have visited your website without making a purchase or generating a lead. Rather than focusing solely on immediate sales, these ads keep your brand top of mind by appearing on websites and apps that your potential customers browse. This helps you stay visible and relevant as they continue their journey online. Often when we run large-scale display campaigns, rather than looking solely at ROI, ROAS or another metric, we’ll monitor brand search volumes. This is valuable because we know brand traffic typically converts at the highest rate. Here’s what that can look like:

3. Paid Social (Facebook, Instagram, LinkedIn)

Paid social ads, particularly on Facebook and Instagram, are great for generating demand and supporting customer journeys. They focus more on brand awareness and staying top-of-mind rather than driving direct sales.

 

4. Paid Shopping Ads (Google Shopping, Bing Shopping)

These ads are perfect for eCommerce businesses, allowing products to appear when people search for them directly. Shopping ads display product images, prices, and links to buy. However, there’s a difference between Google Ads shopping campaigns and performance max campaigns. A shopping campaign serves ads only on Google Shopping, whereas Performance Max shows ads across all of Google’s platforms (watch Google’s video). Often shopping only ads cost per click are lower than search ads, and most E-commerce stores with brick-and-mortar stores would do better to use search with a small radius to focus on driving footfall additionally. Purely E-commerce businesses are more likely to find success from Performance Max if they’re creating assets like videos to search with YouTube Ads through your campaign as this will support you in generating demand and improving visibility. Other methods include testing different combinations of approaches by switching to shopping only and running ads on social platforms, given the reach and lower costs of these ads. For example:

 

5. Video Ads (YouTube Ads, Sky VOD, Amazon VOD)

Video ads are excellent for raising awareness and building interest in your brand. YouTube Ads, along with newer video-on-demand (VOD) platforms like Sky and Amazon, offer businesses a powerful way to engage with a wide audience through compelling video content.

Why YouTube Ads Are a Great Choice

YouTube Ads stand out for their cost-effectiveness and extensive reach. They provide a highly affordable option compared to other platforms and offer access to a massive global audience. This makes YouTube an ideal platform for generating demand and increasing brand visibility.

Enhancing Your Strategy with Google Search and Shopping Campaigns

While YouTube Ads are superb for creating brand awareness and engaging a broad audience, they work best when combined with Google Search and Shopping campaigns. Here’s why:

• Google Search Ads: Designed to capture high-intent traffic from users actively searching for specific keywords, Google Search Ads are essential for converting search interest into actionable leads.
• Google Shopping Ads: These ads utilise Google’s search data to display your products directly in search results, helping to drive conversions from users already interested in what you offer.

By integrating YouTube Ads with Google Search and Shopping campaigns, you create a well-rounded marketing strategy. YouTube drives awareness and interest cost-effectively, while Google Search and Shopping capture and convert high-intent users, ensuring a comprehensive approach to generating and converting demand. We’ve broken down the cost per impression against each approach for you to better understand the cost-effectiveness and reach potential:

6. Email Marketing

Email is one of the most effective methods for nurturing existing customers and driving repeat business. It’s particularly valuable for small businesses that rely on customer loyalty, such as local shops or restaurants. Email marketing also shines when it comes to guiding potential customers through their buying journey.

By using automation, businesses can create personalised email sequences that respond to customer behaviour. For instance, you can set up automated emails to welcome new subscribers, follow up on abandoned shopping carts, or re-engage customers who haven’t interacted with your brand for a while. These automations ensure timely and relevant communication, enhancing the customer experience and increasing the likelihood of conversion.

Customer journeys are another crucial aspect of email marketing. Mapping out these journeys helps you deliver targeted content at each stage, from initial interest to post-purchase follow-up. For example, after a customer makes a purchase, you can send a series of emails offering product recommendations, gathering feedback, and providing aftercare support. This ongoing communication not only reinforces customer satisfaction but also encourages repeat purchases and fosters brand loyalty.

Effective email marketing involves continuously refining your approach based on campaign performance. By analysing open rates, click-through rates, and engagement metrics, you can optimise your strategies to better meet the needs of your audience.

For businesses looking to strengthen relationships with their customers and drive long-term success, email marketing remains a powerful and adaptable tool.

 

7. TikTok (A New Approach to Social Advertising)

TikTok isn’t just another social media platform; it’s a unique space where content creation and discovery are driven by trends, creativity, and short-form video. Unlike traditional social platforms like Facebook or Instagram, TikTok’s content is user-driven, fast-paced, and algorithmically surfaced based on user interests rather than just who they follow.

TikTok’s strength lies in its ability to generate demand and awareness quickly. However, success on the platform requires a completely different approach compared to other social media channels. Brands need to adopt a content-first strategy, embracing authenticity, trends, and engaging storytelling. Rather than relying on polished, highly-produced ads, TikTok thrives on raw, real-time content that resonates with users on a personal level.

To get started, look for inspiration by exploring successful brands within your industry on TikTok. Observe what types of content perform well and consider how you can adapt these ideas to fit your own brand’s voice and style. The key is to make your content unique and engaging while staying true to the platform’s dynamic and informal nature.

 

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Think Beyond Immediate ROI

The length of the customer journey can vary significantly depending on your industry. Relying solely on immediate metrics such as CPA or ROI might not always reflect the true value of your campaigns. Instead of pausing campaigns that don’t show instant results, consider adjusting budgets, refining your targeting, or experimenting with new creatives. Long-term campaigns focused on building brand awareness can yield substantial benefits over time.

 

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Ideas for Better Measurement of ROI

As you refine your approach, it’s crucial to explore more sophisticated methods for measuring ROI. By understanding and implementing these strategies, you can gain a clearer picture of your marketing effectiveness and optimise your efforts for long-term success.

Unique Phone Numbers

For years, businesses that understand their marketing ROI have been using tools like Media Hawk to track the impact of banners, events, and even online activity by using unique phone numbers. This helps measure the effectiveness of marketing campaigns, landing pages, and more.

Blended ROAS and Marketing Effectiveness Ratio Tools

In-app metrics often claim responsibility for the same sales and leads, creating overlap and overestimation. In reality, ads serve many different purposes in converting users into leads and customers. Tools like Ad Beacon help you understand customer journeys and measure your campaign’s blended ROAS and marketing effectiveness ratio. This enables you to make smarter decisions and scale with confidence.

Conversion Rate Optimisation (CRO) Tools

Conversion Rate Optimisation (CRO) tools are essential for businesses looking to maximise the effectiveness of their website traffic. Instead of focusing solely on driving more traffic to your site, CRO tools like Hotjar and Crazy Egg help you understand user behaviour, identify bottlenecks, and improve the user experience to increase conversions.

By analysing heatmaps, session recordings, and A/B testing different page elements, you can optimise landing pages, product pages, and checkout flows to convert more visitors into customers. CRO tools allow you to make data-driven changes, improving your conversion rates without increasing ad spend.

CRO is a powerful way to enhance the return on investment from all marketing channels by ensuring that the traffic you’re already generating has the best possible chance of converting into leads or sales.

 

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How to Improve ROI in Digital Marketing

Improving ROI (Return on Investment) in digital marketing is crucial for maximising the return from your marketing spend. To achieve this, it’s essential to adopt a strategic, data-driven approach. Here are some key strategies to help boost your ROI:

Focus on High-Quality Leads

Not all traffic is equal. Aim to attract leads that are more likely to convert into customers. Utilise audience segmentation tools within platforms like Google Ads and Facebook Ads to target users based on behaviour, interests, and demographics that align with your ideal customer.

Tip: Instead of casting a wide net, refine your targeting to reach smaller, more engaged audiences. This approach reduces wasted ad spend and increases conversion rates.

 

Optimise Your Landing Pages

Even the most well-targeted campaigns can falter if the landing page experience is subpar. Ensure your landing pages are fast-loading, mobile-optimised, and designed to convert. Key elements include clear calls to action (CTAs), minimal distractions, and relevant content.

Tip: Use A/B testing tools to experiment with different landing page elements, such as CTA buttons or headlines, and optimise based on performance.

 

Leverage Retargeting Campaigns

Most visitors won’t convert on their first visit to your website. Retargeting ads help re-engage these users with tailored content or special offers, encouraging them to complete their purchase or inquiry.

Tip: Target visitors who have abandoned their shopping carts or viewed key pages, like pricing or services, with ads that address their hesitations or offer limited-time promotions.

 

Track the Right Metrics

Focusing on the wrong metrics can lead to wasted spend. Instead of solely relying on vanity metrics like impressions and clicks, monitor cost per conversion, customer lifetime value (CLV), and your actual ROI.

Tip: Implement conversion tracking across all campaigns to ensure every lead, purchase, or phone call is accurately recorded. This will provide a clearer understanding of your true performance.

 

Optimise Your Budget Allocation

Analyse which channels are performing best and allocate your budget accordingly. For example, if your paid search campaigns are generating a higher ROI than social media, consider shifting a portion of your ad spend to more effective channels.

Tip: Regularly review your campaign performance data and adjust budgets in real time to capitalise on high-performing channels.

 

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Best Marketing Channels for Small Businesses

Choosing the right marketing channels is crucial for small businesses aiming to maximise their limited marketing budgets. While some channels may be more effective depending on your industry, here are the most impactful options for small businesses to consider:

Google Ads (Paid Search)

Google Ads is a highly effective channel for small businesses, particularly those offering local services. Paid search captures demand when people are actively searching for your product or service, translating into direct inquiries and leads.

Best For: Local businesses, service-based businesses, and eCommerce stores.
Example: A local plumber uses Google Ads to target customers searching for “emergency plumber near me,” generating immediate leads from people in urgent need.

 

Bing Ads (Paid Search)

Bing Ads provides another valuable paid search opportunity, often at a lower cost per click compared to Google Ads. It’s especially beneficial for reaching users who prefer Bing over Google, and can complement a Google Ads strategy.

Best For: Local businesses, service-based businesses, and eCommerce stores looking to diversify their search advertising.
Example: A small local business uses Bing Ads to capture additional search traffic for “best coffee shop near me,” tapping into a different segment of potential customers.

 

Facebook and Instagram Ads (Paid Social)

Paid social ads are ideal for building brand awareness and engaging potential customers. Facebook and Instagram enable businesses to create highly targeted campaigns based on users’ interests, behaviours, and demographics. These platforms work particularly well for products or services with visual appeal, such as retail or hospitality businesses.

Best For: Retail, hospitality, beauty, fitness, and service-based businesses.
Example: A local restaurant runs an Instagram ad campaign showcasing seasonal dishes, attracting attention from nearby food enthusiasts.

 

LinkedIn Ads (Paid Social)

LinkedIn Ads are effective for B2B marketing, allowing businesses to target professionals based on job title, industry, and company size. It’s particularly useful for generating leads in industries like technology, finance, and professional services.

Best For: B2B companies, professional services, and industries looking to engage with a professional audience.
Example: A software company uses LinkedIn Ads to target decision-makers in technology firms, driving leads for their enterprise solutions.

 

Email Marketing

Email marketing remains one of the most cost-effective channels, offering a high return on investment. Building an email list allows businesses to nurture relationships with existing customers, promote repeat business, and drive loyalty.

Best For: Any business with a customer base, especially retail, restaurants, and professional services.
Example: A small boutique uses email marketing to send weekly newsletters featuring exclusive offers and new product launches, encouraging regular customers to return.

 

SEO (Search Engine Optimisation)

SEO is essential for every business. It helps improve your website’s visibility on Google for relevant searches, driving organic traffic and reducing reliance on paid ads over time. A strong SEO strategy is crucial for all businesses looking to attract potential customers and improve online presence.

Best For: Every business, regardless of industry.
Example: A local dental clinic invests in local SEO to ensure their website appears when potential patients search for “dentist in [city].”

 

TikTok (For Trend-Based Awareness)

TikTok is increasingly popular among small businesses, especially those targeting younger demographics. With its focus on short-form video content, TikTok provides a creative platform to engage users, build awareness, and drive traffic. Businesses can leverage TikTok’s algorithm to tap into trending content and reach a broader audience.

Best For: Retail, beauty, fitness, and entertainment industries.
Example: A local fitness studio creates workout challenges on TikTok, engaging users with creative, shareable content that raises brand awareness.

 

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Final Thoughts

Every marketing channel plays a unique role in helping your business grow. Whether you’re focused on building brand awareness or capturing search traffic, understanding the long-term value of each channel will help you make better decisions. Remember to give algorithms time to learn and optimise, and don’t rush to make changes if results aren’t immediate. With patience and the right strategy, these channels will contribute to long-term growth and success.

If you’d like to discuss how these strategies can be applied to your business, don’t hesitate to reach out. We’re here to help you refine your approach and achieve long-term success!