Yet, investors are ultimately aiming for an above average return on a time period that is quantified as a time-weighted annual percentage. A good marketing ROI will depend on the company and its cost structure. How Do I Calculate My Target Marketing ROI Ratio? .. Why, because a lower percentage of profit is still more money at a higher volume than a. Don't fool yourself about how " good " a rate of return should be. number that signifies the income generated by the investment as a percentage of its initial cost. The information is being presented without consideration of the investment objectives, risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors. Stock splits and dividends must be factored in. Powered and Implemented by Interactive Data Managed Solutions. Historical Returns Over a very long period, the stock market does very well. However, the best way to determine good ROI for your business it to look at your historical performance. Plus, real estate investors are known for using mortgages, which are a form of leverage, to increase the return on their investment. For example, five dollars in sales for every one dollar spent in marketing yields a 5: A Guide to Calculating Return on Investment. Stock splits and dividends must be factored in. With passive investments, the more risky the investment the higher average return you expect to make, and the more money you invest the higher your total investment earnings will usually be. Finally, marketing is about generating revenue. What Is A Good Marketing ROI? Virtually all franchises assume that the owner will be investing at least some of their time and talent in the business in addition to their money. Most new businesses go through a startup phase where they lose money for a while, then break even and ultimately become profitable. February 25, at 1: Marketing ROI The Most Effective Marketing Channels for Your B2C Business. Of course, some years are better than others. In most instances, your investment account goes up because the investments within the account stocks, mutual funds, bonds, etc went up in value. Top-down pressure for marketers to prove ROI is on the rise.