Guide to Calculating Marketing ROI and Maximising Results for Established Businesses
- The Change Starter
- Oct 12
- 15 min read
In this guide, we’ll break down:
How to calculate marketing ROI
What to include in your calculations
How to choose the right marketing metrics
And how to use ROI data to fine-tune your marketing strategy
This isn’t about jargon or spreadsheets for the sake of it - it’s about helping you make smarter decisions, optimise your marketing spend, and create real, measurable growth.
Short on time? Grab our free Marketing Metrics Guide and get straight to the key insights. It’s your shortcut to understanding the metrics that matter most - perfect if you want to optimise your strategy without reading the complete guide right now. |
Here’s what we cover in this guide:
Understanding Marketing ROI
What is Marketing ROI & Why Does It Matter?
Simply put, marketing ROI (Return on Investment) indicates how effectively your marketing spend contributes to your bottom line. Are you getting more out than you’re putting in? Are your marketing activities truly helping you grow?
It’s more than just a buzzword - understanding ROI helps you make confident decisions about where to invest, what to refine, and what to let go.
Definition and Formula for Calculating Marketing ROI
At its core, marketing ROI is calculated like this:
(Revenue from marketing – Marketing costs) ÷ Marketing costs = ROI
This simple percentage indicates the return you’re getting for every dollar spent. We provide more detailed instructions on calculating marketing ROI later in the guide, where we also outline what should (and should not) be included in your costs.
Short-Term vs. Long-Term Marketing ROI
Not all marketing delivers instant results - and that’s okay. Short-term ROI often comes from direct-response channels, such as Google Ads or paid social media, where you can see immediate clicks and conversions. However, long-term ROI is built over time through consistent content, brand engagement, and strong customer relationships.
If you only focus on short-term gains, you risk missing out on the bigger, more sustainable wins. Later in this guide, we will show you how to adjust for long-term value and explain why it is crucial to consider both timeframes when evaluating your success.
The Role of Attribution Models in Measuring Marketing Success
Here’s the truth - most buyers don’t just see one ad and decide to purchase. They may encounter your brand in various places - social media, email, and search engines - before they take action.
That’s where attribution models come in. These help you understand which marketing channels or touchpoints contributed to the final conversion, so you can better track which parts of your strategy are driving results. More on this later, when we explore multi-touch attribution and its impact on your overall ROI picture.
ROI Includes Traffic, Engagement, and Brand Presence
One of the biggest misconceptions is that ROI is only about direct sales. In reality, it also includes things like:
Website traffic – Are more people discovering your brand?
Social media engagement – Are they interacting with your content?
Brand presence – How often is your brand seen or talked about?
These factors may not be immediately visible in your bank account, but they build momentum and trust over time, fuelling future sales.
“Silent Sales” Moments from Cross-Channel Visibility
Many of your leads are quietly influenced by what they see - blogs, LinkedIn posts, or even customer reviews - without ever clicking an ad. These “silent signals” often go unnoticed, but they significantly influence how people perceive your brand and whether they decide to engage later.
Increased Presence Leads to Increased Trust and Future Action
The more familiar someone is with your brand, the more likely they are to trust you, remember you, and ultimately make a purchase from you. Showing up regularly - across channels - builds that trust. Even if they don’t take action right away, your presence keeps you top of mind for when they’re ready.
Marketing Metrics vs. Sales Metrics: What’s the Difference?
Marketing and sales are often lumped together, but they play distinct roles in driving your business forward. While they work hand in hand, understanding their distinct metrics is crucial to calculating a meaningful marketing ROI.
Key Distinctions Between Marketing and Sales KPIS
Marketing KPIS focus on engagement and lead generation, while sales KPIS focus on conversions and revenue. Both are essential, but they measure different stages of the customer journey.
Marketing Metrics Drive Awareness and Interest
Metrics such as website traffic, social media engagement, and email open rates demonstrate the effectiveness of your marketing efforts in attracting and nurturing potential customers.
Sales Metrics Track Conversion and Revenue
KPIS such as leads closed, average order value, and customer acquisition cost, measure how many of those prospects turn into paying customers.
We will delve deeper into specific metrics in the Key Marketing Metrics section below
How Marketing Contributes to Revenue Beyond Direct Sales
Marketing’s role isn’t just to generate sales today - it’s to build the brand, create demand, and set up future wins.
Building Brand Loyalty and Trust
Consistent social media marketing and the creation of valuable content help your audience trust you, leading to repeat business and referrals over time.
Creating Lead Nurture Systems for Long-Term Growth
Automated email marketing and retargeting ads keep you in front of leads, guiding them towards purchase at their own pace.
Why Focusing Only on Revenue Can Be Misleading
If you only measure success by immediate sales, you might miss the complete picture of how marketing builds sustainable growth.
Some Campaigns Deliver Value Over Time
Brand awareness, SEO efforts, and thought leadership may not generate immediate sales, but they fuel long-term, organic growth.
Customer Engagement Leads to Higher Lifetime Value
Engaged customers tend to buy more over time. Measuring customer lifetime value (CLV) can reveal the actual impact of your marketing strategy.
Marketing builds awareness and trust over time
A 2023 study from Dreamdata shows that, on average, a B2B customer engages in approximately 60 to 62 touchpoints before making a purchase, with the entire buying journey typically spanning over 6 months or more.
Marketing metrics track how well you’re getting noticed and how much your audience connects with your brand. It’s about building brand loyalty, trust, and positioning your business for future sales, not just closing the deal today.
Search and discovery behaviour is part of ROI too
People often search, browse, and research before taking action. Tracking search engine rankings, website traffic, and organic clicks shows how well your business is being found - and how discovery leads to growth.
This section sets the stage for the practical stuff. Next, we’ll dive deeper into calculating your marketing ROI and what to include for an accurate picture.
Calculating Marketing ROI: What to Include and Why It Matters
It’s one thing to know the ROI formula, but what you include in those numbers can make or break your results. Getting this right means you can confidently track your marketing performance and make smarter decisions for future campaigns.
The Basic Marketing ROI Formula
Understanding the core calculation helps you set a baseline.
(Revenue from marketing – Marketing costs) ÷ Marketing costs = ROI
This simple formula tells you how much return you’re getting for every dollar spent. If you spent $10,000 and made $30,000, your ROI is 200%.
What Counts as “Revenue from Marketing”?
Only include revenue that can be reasonably linked to your marketing efforts.
Sales Directly from Marketing: Track revenue from specific marketing activities like ads, email campaigns, or other promotions.
Leads and Conversions from Marketing: Include revenue from sales that resulted from leads or sign-ups generated through social media, SEO, or content marketing efforts.
Revenue Influenced by Marketing: Include revenue where marketing played a role, even if it wasn't the direct cause. For example, if a customer interacted with your brand before contacting sales, this could influence revenue.
What Costs Should You Include?
This is where many businesses underestimate. Marketing budgets are more than just ad spend.
Marketing Costs to Consider
Paid Advertising: Costs for running ads on social media, search engines, and in print.
Content Development: Expenses for creating assets like blog posts, social media content, videos, and graphic design.
Software & Tools: Subscription fees for email marketing platforms, CRM software, analytics tools, and similar.
External Support: Fees for agencies or freelancers providing services like ad management, design, or strategy consulting.
Internal Labour: If your team dedicates significant time to marketing efforts, consider including a portion of their salaries as part of your marketing costs.
Adjusting for Long-Term Value
Not all marketing delivers results straight away, and that’s okay. Some of the best growth comes from playing the long game. It’s important to adjust your ROI calculations to consider both immediate wins and future value.
Customer Lifetime Value (CLV) vs. One-Off Sales
A one-time sale might be small, but if that customer makes repeat purchases, their total value increases. CLV helps you measure the actual value of a customer over time.
Return Over Longer Brand-Building Cycles
Some marketing activities take time to pay off. Investing in content marketing, SEO, or building your social media presence may not yield immediate returns. Still, over time, these efforts build trust, increase awareness, and ultimately lead to organic sales.
When ROI Is Hard to Quantify
Let’s face it, not everything in marketing fits neatly into a spreadsheet. Some of the most potent effects are harder to measure but just as important.
Website traffic and engagement signal future potential
More website traffic, clicks, or shares might not convert immediately, but they show growing interest in your brand and open the door for future sales.
Trust and brand recall drive long-term success
The more familiar and trusted your brand becomes, the more likely people are to choose you when they are ready to make a purchase. These are the “invisible wins” that compound over time.
If you're only chasing the metrics you can measure, you're missing the magic. The truth is, metrics are important guides, but great marketing isn’t always directly traceable, especially when it’s working exactly how it should.
People don’t move in straight lines; they’re influenced subtly, repeatedly, and often unconsciously.
Real-World Example: When a Grocery Brand’s ROI Went Beyond Data
|
One of our clients, a grocery brand, experienced this firsthand. We can't attribute every sale to a specific ad or post, but we saw the traction grow. We saw the brand start to stick.
Then one day, they were out of stock, scrambling to meet demand.
That’s when you know it’s working - not because of one data point, but because the brand has entered the conversation, and stayed there. |
Key Marketing Metrics & What They Tell You
You can’t improve what you don’t measure. The right marketing metrics provide a clear view of how effectively each channel supports your ROI goals, enabling you to spend smarter and scale faster.
Overview of Marketing Metrics by Channel Type
Each marketing channel contributes to ROI in its own way, and it’s rarely just one channel that seals the deal.
How do different channels contribute to ROI
Some channels drive traffic, others nurture leads, and some push for conversion. Knowing what role each plays helps you judge them fairly.
Importance of multi-touch attribution
Your audience may see a social media ad, read a blog post, and receive an email before making a purchase. Multi-touch attribution helps you track these touchpoints, giving credit where it’s due.
Metrics for Each Channel (Breakdown by Type)
These are the key performance indicators to watch across your marketing efforts, so you can optimise what’s working and rethink what’s not.
Organic Social Media (LinkedIn, Instagram, Facebook, Twitter, TikTok, etc.)
Engagement rate (likes, comments, shares)
Measures how actively your audience interacts with your posts.
Reach & impressions
Shows how many people saw your content and how often.
Click-through rate (CTR)
Tells you how many clicked a link in your post to learn more.
Meta Ads (Facebook & Instagram Ads)
Click-through rate (CTR)
Gauges ad effectiveness in driving traffic.
Cost per click (CPC)
Tracks how much each click costs.
Cost per conversion
Measures the cost to achieve a specific goal, like a lead or sale.
Return on Ad Spend (ROAS)
Calculates revenue earned for every dollar spent on ads.
Google Ads (PPC & Display Ads)
Quality Score
Google’s rating of your ad relevance and landing page quality.
Cost per click (CPC)
The amount paid each time someone clicks your ad.
Conversion rate
The percentage of clicks that led to a desired action.
Cost per lead (CPL)
The cost to acquire a lead through Google Ads.
Domain authority (DA)
Predicts how well your site will rank on search engines.
Keyword rankings
Tracks where your site ranks for target keywords.
Organic click-through rate (CTR)
How often do people click your site from search results?
Bounce rate
The percentage who leave after viewing one page.
Engagement rate
Measures how your target audience interacts with LinkedIn content.
Click-through rate (CTR)
Shows the effectiveness of your ad in driving clicks.
Cost per lead (CPL)
Calculates how much you pay for each new lead from LinkedIn.
Cold Email & LinkedIn Inbox Outreach
Open rates
Percentage of recipients who open your email or message.
Response rates
How many reply or engage with your message?
Conversion rate
The percentage of responses that lead to action (e.g. booking a call).
HTML/Banner Ads in Trade Publications
Viewability rate
How often was your ad seen on the page?
Click-through rate (CTR)
Measures how many clicks your banner ad receives.
Cost per impression (CPM)
The cost per thousand ad views.
Websites & Landing Pages
Bounce rate
How many visitors leave without interacting?
Conversion rate
Percentage of visitors who complete a goal (signup, purchase).
Average session duration
Time spent on your site - longer sessions often mean more interest.
Email Marketing
Open rate
The percentage of recipients who open your email.
Click-to-open rate (CTOR)
Percentage who click after opening - measures content effectiveness.
Unsubscribe rate
How many opt out of future emails - signals content relevance.
Other Marketing Channels (Podcast Ads, Influencer Marketing, etc.)
Unique downloads/listens
Tracks reach for podcast sponsorships.
Referral traffic from influencers
Measures visitors coming from influencer mentions or posts.
Lead attribution tracking
Links lead back to these specific channels for proper credit.
Marketing Benchmarks: What’s a "Good" Performance?
It’s one thing to track marketing metrics, but how do you know if your results are good? That’s where benchmarks come in. Knowing what’s typical in your industry helps you set realistic goals and identify areas where you can improve.
Industry-Specific Benchmarks for Key Metrics
Let’s break down some standard marketing benchmarks to help you evaluate your performance across different channels.
What should Facebook CTR be?
A solid click-through rate (CTR) on Facebook Ads typically ranges from 0.9% to 1.5%, depending on industry. Higher CTRS suggest your targeting and creative are spot-on.
What’s a good email open rate?
Across most industries, a reasonable open rate for email campaigns sits between 20% and 25%. If you’re consistently below this, it might be time to refine your subject lines or audience list.
Benchmarking Google Ads performance across industries
A strong Google Ads conversion rate varies, but averages 3% to 5%. The cost per click (CPC) typically ranges from $1 to $3 AUD (£0.50 to £1.50 GBP), although industries such as law or finance may be more competitive and have higher costs.
SEO benchmarks: Expected traffic growth & rankings
For SEO, a healthy organic traffic growth rate is around 10% month-on-month. Keyword ranking improvements typically occur within 3 to 6 months, depending on the level of competition.
Download Our Guide to Marketing Metrics
Discover how to leverage key metrics to optimise strategies, drive growth, and make data-driven decisions. Whether you're new or refining your approach, this guide is your trusted partner in mastering marketing performance.
Best Tools for Measuring Marketing ROI
To get the most out of your marketing spend, you need the right tools to track what’s working. These platforms help you track your ROI, showing where your efforts are paying off and where you need to adjust your approach.
These are the must-haves in your toolkit to measure, track, and optimise your marketing performance.
Google Analytics – Website tracking & conversions
A go-to for tracking website traffic, user behaviour, and how visitors convert. It shows which pages perform, where traffic drops off, and ties back to your marketing campaigns.
Google Search Console – Organic search performance
Essential for monitoring how your site shows up in search. Tracks keyword rankings, impressions, and clicks—ideal for improving SEO and organic traffic.
Google Tag Manager – Event tracking
Lets you set up tracking for key actions on your site—like form submissions or button clicks—without messing with code. Helps fine-tune your ROI measurement.
Meta Business Manager – Facebook & Instagram ad tracking
Tracks the performance of your Meta Ads, including CTR, CPC, and ROAS, so that you can adjust campaigns for better returns.
LinkedIn Campaign Manager – LinkedIn Ads tracking
Gives insights into how your LinkedIn Ads are performing—track leads, engagement, and costs to ensure you're hitting your B2B marketing goals.
HubSpot / CRM Tools – Lead tracking & nurturing
HubSpot is a great all-in-one CRM for tracking leads, managing pipelines, and directly tying marketing activities to sales outcomes.
Alternatives for Small & Mid-Sized Businesses:
ActiveCampaign CRM – Known for its strong automation and lower cost compared to HubSpot.
Zoho CRM – A budget-friendly option with solid marketing and sales integration features.
SEO & Keyword Tools (Ahrefs, SEMrush, Moz) – Organic rankings
Track how well your content is ranking, find keyword opportunities, and see what’s driving organic growth over time.
Email Marketing Platforms (Mailchimp, Kit, ActiveCampaign) – Email engagement metrics
These tools help you measure open rates, click-throughs, and conversions from your email campaigns.
We’ve listed these alternatives because while HubSpot offers email marketing as a paid add-on to its CRM, some businesses prefer standalone platforms for flexibility or cost reasons.
When to use HubSpot Email vs Standalone Tools:
Choose HubSpot if you want everything integrated - CRM, emails, automation, and reporting all in one place.
Opt for Mailchimp, Kit, or ActiveCampaign if you need a dedicated tool with more advanced email features or you’re working within a tighter budget.
How a Marketing Consultancy Like The Change Starter Evaluates Success
The Change Starter recognises that ROI is only one aspect of a successful marketing strategy. Genuine success lies in developing a sustainable marketing system that fosters consistent, measurable growth in sales, brand strength, and customer loyalty. Here’s how we track success for our clients.
We focus on metrics that reflect both quick wins and sustained impact. Here’s what we look for to know your marketing is truly working:
Increase in website traffic
More visitors = more eyes on your brand and more potential leads.
Growth in brand engagement
Higher interaction on social media, emails, and content means your audience is connecting and paying attention.
Higher lead conversion rates
It’s not just about leads - it’s about more of them becoming paying customers.
Improved cost efficiency (lower CAC)
We aim to reduce Customer Acquisition Cost over time, making your budget stretch further for better returns.
The Change Starter’s Proven Success Formula
Our philosophy is simple: marketing should be sustainable, strategic, and focused on long-term business growth, not just quick wins or flashy metrics.
Here’s how we put that into practice with our clients:
We build marketing systems designed to deliver results now and continue compounding over time.
We focus on sustained brand growth because ROI isn’t just about sales, it’s about visibility, trust, and staying top-of-mind.
We prioritise relevance over noise, helping you deliver the right message to the right audience, at the right time.
We refine and evolve campaigns based on honest feedback and meaningful signals, not vanity metrics.
We measure what matters most to your business, keeping your marketing purposeful, aligned, and results-focused.
Real-World Example: Optimising Budget for Maximum ROI
|
We had a new client come onboard who had been over-investing in Google Ads, driving up costs without seeing quality results. After evaluating their spending, we reallocated their budget across SEO, content marketing, and paid ads. The result? We reduced their overall spending and increased lead quality and volume. This strategic shift maximised ROI and demonstrated the value of expert management in optimising marketing budgets. |
Expert Insights: How Industry Leaders Measure Marketing ROI
We asked CMOs and marketing leaders at established small to mid-sized businesses how they measure marketing ROI. Here’s what they shared—practical insights and real-world strategies that help drive better results.
For a new property development project in Brisbane, we launched a branding-focused campaign leveraging social media advertising, Google Display Ads, and SEO. Given that the sales cycle for new developments typically ranges from 12 to 24 months, we anticipated a delayed return on investment. In the early stages, website traffic increased steadily, but lead volume remained flat. However, around the four-month mark, the client began hearing from prospects who mentioned consistently seeing the brand’s ads online. This sustained exposure kept the development top of mind, and when buyers were ready to act, they reached out, demonstrating the power of long-term brand visibility in a high-consideration market. All new houses were sold prior to the grand opening.
~ James Bealey, Marketing Manager, DMB Digital Marketing
Sponsoring an industry event is a marketing activity I'm strongly in favour of, even without clear numbers. If the right audience are in attendance, my gut tells me we should be where they are. The decision is then more about the commercials of the sponsorship deal.
~ Danielle Green, Marketing Manager
When we first launched, we aimed for perfect UGC: clean shots, a strong hook, a clear problem, a quick showcase, and great lighting. But it flopped. Then, a shaky, unpolished clip in which the creator dropped the product mid-sentence went viral. Clicks, comments, shares, saves - the lot.
It taught me that “perfect” doesn’t connect. Real does. And that’s why you always test.
~ Tim Rasbash, Managing Director, Ernest Agency
Facebook showed leads coming in at $5–$15 - a dramatic improvement from our usual $80–$120. But even more were actually entering our CRM. The campaign overperformed in real-world results, giving us a higher volume of leads than Facebook reported. The discrepancy likely stems from how Facebook tracks conversions versus how our CRM records actual leads.
~ Sharon O’Mant, General Manager, SWS
Calculating Marketing ROI: What to Do Next
Tracking the right marketing metrics provides you with the clarity and control to make more informed decisions. From website traffic and lead conversion rates to ROI and customer lifetime value, each metric helps you understand what’s working and where to focus next.
Here’s What to Remember:
ROI isn’t just about sales - it’s about how your marketing efforts contribute to long-term growth.
Utilise key metrics, such as CTR, CPC, bounce rate, and engagement, to inform your strategy.
Different channels need different measures, but they all connect to your bigger goals.
Actionable Next Steps:
Download our free Marketing Metrics Guide to discover how to leverage key metrics to optimise strategies, drive growth, and make data-driven decisions. Whether you're just starting out or refining your approach, this guide is your trusted partner in mastering marketing performance.
Review your current marketing metrics - are you tracking the ones that matter most to your business goals?
Set realistic benchmarks based on your industry and current performance.
Comments