In Round 8 of the Digital Marketing Analytics Simternship, you will be focusing on optimizing your ROI (Return On Investment). You will download the Historical Campaign Data sheet and use this information to create a report. The Resources tab in the bottom right of your simulation will have additional information to assist you with determining ROI with this dataset.
Finding the ROI will help you determine the best decisions for your budget to help you reach your goal for this Round.
How to Optimize for Profits Using ROI:
1. Open the historical data and create a new column called “ROI.”
2. Calculate the campaign’s return on investment (ROI) by first subtracting Cost from Profits and then dividing the result by Cost. ROI = (PROFITS BEFORE MARKETING COSTS - MARKETING COSTS) / MARKETING COSTS
3. After calculating ROI for every campaign, sort the campaigns in descending order.
4. Identify the campaigns with the highest ROI.
5. Using the budget allocation tool, add the campaigns with the highest ROI.
6. Allocate spending to each campaign based on the Recommended Budget Max (you’ll find a column for this in the historical data).
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