A marketing ROI calculation is a powerful tool for marketers. It’s a great practice to project return on investment for your marketing campaigns, and then determine your actual ROI after the campaign is complete.

This forces you to think through all of the important details that affect your final result: your conversion rates at each step in the funnel, your margins, and your costs.

And, it’ll give you credibility with the executives controlling your budget. If you speak in their terms of investment and return, you’ll build credibility and gain buy-in for your marketing ideas.

The below demo walks you through the steps to project marketing ROI for a content marketing campaign. It’ll cover the following steps:

• Estimating response rates for your campaign
• Creating your sales funnel to determine your end conversion rate
• Determining the number of impressions and leads to hit your customer target
• Projecting revenue for the campaign
• Projecting gross profit and net profit
• Itemizing marketing campaign expenses
• Calculating marketing  ROI and comparing it to your hurdle rate
• Measuring actual ROI and comparing it to your projections

If you’d like to download the tool I used in the demo, sign up for a free Marketing MO preview account, then click Browse Tools and add 6.4 – Define Campaign Budget and Project ROI to you marketing project, then follow each step to calculate marketing ROI for your campaign.