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Imagine you launch an Instagram advertising campaign, you invest €500 and make a profit of €700. The prior seems to work pretty well, right? Then, in addition to the 500 euro invested, it is necessary to add 90 euros from the preparer's salary, 100 euros for the working day and 99 euros for the optimization tool. We have a total of 789 euros, right? Now let’s move on to calculating ROI. ROI like we are making money, the reality is that with this campaign, we are losing money. oh oh. Houston.
We have a problem When we see a negative ROI, we have to consider whether the campaign is worth it. While losing money may seem like nothing good at first glance, maybe it was a super good branding campaign that brought us a lot of notoriety. If the Binance App Users Data campaign had an impact and was good for the brand, you can’t say the campaign was bad just because it didn’t have a positive ROI. Obviously, each case is unique and its success or failure must be analyzed in detail.
Limitations of ROI Although ROI may seem to answer all your concerns about the investments and marketing campaigns we undertake, we must remember that it has some limitations. Do we see them? ROI does not take into account the investment period If we talk about a 10% ROI per day, this is a pretty fantastic result, don’t you think? But on the other hand, if we talk about long-term investments (say one year), then a 10% return on investment doesn’t seem so great anymore. real?
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