Bad ROI good ROI? Measure, measure, measure. Nothing can be more destructive than lack of analysis.

Why do we have to measure what we do?

ROI versus ROAS

There is a significant difference between ROI and ROAS.

ROI means profit generated by ads relative to the cost of those ads, while ROAS explains the relation between gross revenue from ads and every euro invested in these ads. It is still subject to many discussions what gives more valuable insights.

ROI in comparison to ROAS is rigorous and does not such easily and willingly consider marketing as a necessary cost of doing business. The best view gives us using both metrics in tandem however we all prefer ROI to be seen growing here.

Anyway, I am inclined to think that there is no such thing as a good or bad result, but at the same time, nothing else can be more destructive than ignorance or lack of any analysis.

PPC campaigns, website optimization, user experience, SEO, natural search, CTR and conversions - some goals are obvious and straight forward, other more complex challenging and complicated. What ROI is ok and what is bad?

Surely we never want to have ROI on the level below zero - however, sometimes it is hardly unavoidable in the thought of proverb that only one who does nothing is never mistaken. The truth is that we need to evaluate our affords by comparing different approaches, timelines or circumstances, and AB testing. It is very similar to the KPI rules.

ROI analysis for some challenging startup.

In this particular case, we were able to spot what kind of investments causes the loss and eliminate it.

I find startups very challenging due to the fact that there is nothing to compare from the past, not mentioning that the profit is usually still "to happen in the future" ;). Also very often we start to work with the client in the situation when investments have been already allocated. Analyzing our example, we can easily tell that the strategy proposed in October become finally profitable.

Summarizing this very short conclusion: Do not focus on visits only, we have so many tools to measure whatever we need that repeating mistakes are inexcusable.