Evaluating Marketing Campaign ROI
Determine the ROI of a recent marketing campaign.
{"problem":"A marketing campaign cost $15,000 and generated $50,000 in revenue. The associated cost of goods sold (COGS) was $30,000. What is the ROI?","pitfall":"A common trap is to calculate ROI using gross revenue instead of net profit, ignoring the costs associated with generating that revenue. This leads to an inflated view of campaign effectiveness.","steps":[{"label":"Step 1: Calculate Net Profit","calculation":"$50,000 (Revenue) - $30,000 (COGS) - $15,000 (Campaign Cost) = $5,000","annotation":"Start by determining net profit, which reflects the actual earnings after all relevant costs. This step is crucial because using revenue without deducting costs can mislead decision-making."},{"label":"Step 2: Calculate Total Investment","calculation":"$15,000 (Campaign Cost)","annotation":"Identify the…
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