Armin Gögele, last updated on June 14, 2023
The classic ROI (Return on Investment) is a key figure in financial management. It shows whether an investment is worthwhile for the hotelier, e.g. an investment in a marketing campaign.
What is the ADDITIVE+ ROI?
In order to provide a meaningful benchmark against which the success of a campaign can be evaluated, ADDITIVE extends the classic ROI with relevant key figures that influence online marketing.
The ADDITIVE+ ROI goes one step further and takes into account the added value generated for a hotel by a campaign in addition to sales figures (e.g. reservation sales) and classic marketing KPIs such as impressions, reach and clicks.
The ADDITIVE+ ROI is expressed as a percentage. It puts the total added value into relation with the total costs incurred, consisting of agency costs and the budget used.
The most important questions about ADDITIVE+ ROI
Why is ADDITIVE+ ROI relevant in hotel marketing?
ADDITIVE+ ROI provides a holistic evaluation of campaign success and enables hoteliers to better understand the effectiveness of their marketing efforts. It takes into account both revenue metrics and important online marketing KPIs to allow for a comprehensive assessment of campaign performance.
What are the benefits of ADDITIVE+ ROI over the traditional ROI?
ADDITIVE+ ROI offers an expanded perspective by considering not only revenue metrics but also relevant online marketing KPIs. This allows for a more detailed analysis of campaign performance and informed decision-making in allocating the marketing budget.
How is ADDITIVE+ ROI calculated?
ADDITIVE+ ROI is calculated by comparing the total
value generated by a campaign to the total costs incurred. The result is expressed as a percentage, enabling an evaluation of the cost-benefit ratio of a campaign.
