What’s the Return on Investment? Essay

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It is important to measure the effectiveness of any investment. One of the strategies used to evaluate the effectiveness of investment (and the campaign) is to measure the return on investment (ROI). To identify the return on investment, it is important to know net profit and cost of investment (Zook & Smith, 2016). It is necessary to divide net profit by the cost of investment. To identify the net profit, it is necessary to subtract the cost of investment from the revenue from investment (Zook & Smith, 2016). The formula for the assessment of the effectiveness of investment will be as follows:

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ROI = (revenue from investment – cost of investment) / cost of investment

The use of this formula is a simple way to identify the effectiveness of investment as it will be easy to measure the amount of revenue.

The number of times the videos were viewed through YouTube is another important measurement. Of course, if more people watch the video, more people will know about the college and its programs. The campaign will be successful if as many people as possible watch the video.

However, understanding of the amount of revenue and assessment of the number of people who watched the ad are only a part of the evaluation process. It is important to take into account other factors. For example, it is necessary to analyze some benchmarks existing in the industry. It is possible to carry out a survey to assess the effectiveness of the campaign.

The students of the college can complete the questionnaires on the campaign. It is important to find out whether students learned more about the college, whether they find the ad interesting and helpful. It is also possible to ask people living in the city complete short surveys (Phillips, Trotter & Phillips, 2015). People can be asked questions right in the street. This method will help evaluate the effectiveness of the campaign as the researchers will identify the level of populations’ awareness of the college and programs.

One of the most important benchmark is the size of the community created (Phillips, 2012). To attract more students, partners and professors is a strategic goal of the campaign. The effectiveness of the investment will be obvious if the number of students, partners, and professors grows. Besides, the community may also involve existing students. It is important to make existing students aware of various programs existing in the college. Importantly, the students should become active participants in these programs. Thus, if the number of active students in the college grows, it will also show the effectiveness of the campaign.

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Thus, it is important to evaluate all these factors to understand whether the campaign (and investment) is successful. The development of the community (a network of the most active participants) should be regarded as the most important benchmark.

Reference List

Phillips, J.J. (2012). Return on investment in training and performance improvement programs. New York, NY: Routledge.

Phillips, J.J., Trotter, W.D., & Phillips, P.P. (2015). Maximizing the value of consulting: A guide for internal and external consultants. Hoboken, NJ: John Wiley & Sons.

Zook, Z., & Smith, P.R. (2016). Marketing communications: Offline and online integration, engagement and analytics. Philadelphia, PA: Kogan Page Publishers.

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IvyPanda. (2020, August 25). What’s the Return on Investment? https://ivypanda.com/essays/whats-the-return-on-investment/

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"What’s the Return on Investment?" IvyPanda, 25 Aug. 2020, ivypanda.com/essays/whats-the-return-on-investment/.

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IvyPanda. (2020) 'What’s the Return on Investment'. 25 August.

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IvyPanda. 2020. "What’s the Return on Investment?" August 25, 2020. https://ivypanda.com/essays/whats-the-return-on-investment/.

1. IvyPanda. "What’s the Return on Investment?" August 25, 2020. https://ivypanda.com/essays/whats-the-return-on-investment/.


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IvyPanda. "What’s the Return on Investment?" August 25, 2020. https://ivypanda.com/essays/whats-the-return-on-investment/.

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