Marketing Agency Red Flags Every Business Owner Should Know

Key Takeaways

Here's what you actually need to know about marketing ROI reporting in 2025:

• Effective ROI reporting goes way beyond basic calculations. You need comprehensive attribution models and metrics that actually matter to stakeholders [1]

• The most successful businesses achieve 5:1 ROI ratios, with email marketing delivering £36 return for every £1 spent [2]

• Different channels have completely different payback periods. Facebook Ads break even in 3 months, whilst SEO takes 9 months [3]

• Customer Lifetime Value and acquisition costs tell you far more than simple conversion metrics ever will [4]

• Executive reporting should focus on business impact rather than marketing vanity metrics that don't move the needle [5]

• Multi touch attribution models actually show you which touchpoints drive conversions throughout the customer journey [6]

• The biggest ROI mistakes? Short term thinking, incomplete cost accounting, and obsessing over marketing metrics instead of business outcomes [7]

  
  

What ROI Reporting Really Means (And Why Most Get It Wrong)

Marketing ROI reporting has become one of those things everyone talks about but few actually get right. The reality is, it's not really about proving your campaigns work. It's about showing stakeholders that marketing genuinely contributes to the bottom line. What we've found over the years is that the businesses securing decent marketing budgets aren't necessarily running the best campaigns; they're just much better at communicating their results.

This guide walks through everything you need to build reporting that actually gets taken seriously: calculating ROI that makes sense, creating reports people will read, and understanding which metrics different stakeholders care about. We'll cover industry benchmarks, attribution models, and the mistakes that make your reporting look amateur.

Most people jump straight into the basic formula: (Revenue Generated + Marketing Cost) / Marketing Cost × 100. Fair enough, but that's not the complete picture. You need to factor in organic growth: (Sales Growth + Organic Sales Growth + Marketing Cost) / Marketing Cost. Skip this step, and you're accidentally inflating your results, which tends to come back and bite you later.

The Metrics That Actually Matter to Your Stakeholders

Different people care about different things when it comes to marketing performance. CFOs want to see financial returns and cost efficiency. Sales teams are interested in lead quality and conversion rates. CEOs need the big picture: how marketing fits into overall business goals.

Customer Acquisition Cost (CAC) is probably the most important metric for stakeholder reporting. It shows exactly what you're spending to bring new customers through the door. But CAC on its own doesn't tell you much. You need Customer Lifetime Value (CLV) alongside it to see if you're making smart investments.

CLV isn't complicated: Average Purchase Value × Purchase Frequency × Customer Lifespan. A customer costing £50 to acquire but worth £500 over their lifetime? That's a good investment. One costing £200 but only worth £150? You've got problems.

Return on Ad Spend (ROAS) focuses purely on advertising revenue versus spend, whilst marketing ROI includes everything: staff costs, software, content creation. Getting your approach right means matching the right metrics to what each stakeholder actually cares about.

Industry Benchmarks That'll Give You Context

Benchmarks help you understand whether your performance is actually good or just feels good. Successful marketing typically hits a 5:1 ratio: £5 back for every £1 spent. The average across industries sits at 3.62:1, whilst the top performers achieve around 4.33:1.

Channel performance varies quite a bit. Email marketing delivers exceptional returns: £36 back for every £1 spent (that's 3,600% ROI). SEO gives strong long term returns averaging 22:1, though it takes time to get there. PPC typically delivers 200% ROI, whilst content marketing varies wildly depending on how well it's executed.

Time to break even differs massively by channel. Facebook Ads usually break even within 3 months, great if you need quick wins. SEM and PPC need about 4 months. LinkedIn takes 5 months, email campaigns need 7 months, and SEO requires 9 months on average. Understanding these timeframes is essential for setting realistic expectations with stakeholders.

Multi Touch Attribution: Beyond Last Click Nonsense

Single touch attribution (crediting everything to one touchpoint) gives you a skewed picture of what's actually working. Most customers interact with multiple touchpoints before buying, and if you're not tracking this, you're making budget decisions based on incomplete data.

Multi touch attribution spreads credit across the entire customer journey. Linear attribution gives equal credit to each touchpoint. If someone interacts with four touchpoints before spending £100, each gets £25 credit. Time decay gives more credit to recent interactions, recognising that the final touchpoints often matter more.

The smartest approach? Use multiple attribution models together. Getting this right becomes really important with longer sales cycles where you might see 6 to 12 touchpoints before conversion.

Building Reports That Actually Get Read

Executive reporting needs a different approach from your usual marketing dashboards. Executives want to see business impact, not marketing metrics. Start with a scorecard showing the important information: projected revenue, total investment, ROAS. Keep it simple and focused.

Your performance section should give one layer of detail around metrics that actually move the business forward. Cost per lead combining ad spend and management fees, customer acquisition costs by channel. Useful insights without overwhelming them with data.

Different stakeholders need different reporting schedules. CFOs want monthly financial summaries with quarterly deep dives. Sales teams prefer weekly lead reports. CEOs like quarterly strategic reviews with monthly updates on key metrics. Transparency throughout the process builds trust and makes stakeholders more willing to support marketing investments.

ROI Mistakes That'll Sink Your Credibility

Short term thinking damages good ROI reporting. Focusing only on immediate results ignores long term value from brand building and customer loyalty. Track Customer Lifetime Value alongside immediate conversions to get the full picture.

Incomplete cost accounting is a common trap. People track ad spend but forget staff time, software subscriptions, content creation costs. Use thorough project tracking to capture all expenses, otherwise your ROI calculations don't mean much.

The biggest mistake? Focusing on marketing performance instead of business performance. True ROI shows incremental profits from marketing spend, not just efficiency metrics. Getting this perspective right separates experienced marketers from beginners.

Tools That Actually Help (Not Hinder) ROI Tracking

Modern ROI tracking needs tools that bring data from multiple sources together. Platforms like Ruler Analytics connect CRM data to marketing channels, showing which campaigns drive actual revenue rather than just leads. Marketing automation platforms offer built in ROI tracking with custom calculations.

Data integration solutions like Supermetrics connect to 150+ marketing sources, automating your entire reporting workflow. But remember, fancy tools won't help if your dashboard design is poor. Focus on what stakeholders actually need: traffic, conversion rates, acquisition costs, and ROI presented clearly.

The most successful setups combine multiple tools and data sources. Getting your tracking right creates the foundation for everything else you do.

Channel Specific ROI Reality Check

Different channels need different ROI approaches. SEO delivers strong long term returns but requires patience. That 9 month payback period means you need to stick with it through the early months when you're seeing minimal results.

Paid advertising provides immediate, measurable returns, making ROI calculation straightforward. But these channels need ongoing optimisation to maintain performance. ROI can drop quickly without regular attention.

Email marketing consistently delivers those £36 returns per £1 spent, but only with quality lists and decent segmentation. Content marketing ROI varies widely. Some pieces drive immediate traffic, others build authority over time. Smart social media approaches require tracking both direct conversions and indirect benefits like brand awareness.

Making ROI Reporting Drive Actual Business Growth

The point of ROI reporting isn't measurement for its own sake. It's creating insights that drive business growth. This means connecting ROI data to specific decisions about budget allocation, channel priorities, and strategic direction.

Good ROI reporting identifies improvement opportunities and provides clear recommendations. Move budget from underperforming channels to high ROI activities. Invest more in channels showing strong performance but limited scale. Use ROI data to make proactive decisions rather than reactive adjustments.

The businesses getting maximum value from ROI reporting treat it as an ongoing strategic process, not a monthly task. This creates a cycle of continuous improvement that builds momentum over time.

Getting ROI reporting right requires expertise, the right tools, and strategic thinking. If you're struggling to demonstrate marketing value or want to build a comprehensive ROI framework that actually drives business decisions, we'd love to have a conversation about how we can help. We specialise in creating transparent, data driven marketing strategies that deliver measurable results.

Ciao for now!

Ali Puglianini

Frequently Asked Questions

What's the difference between ROI and ROAS in marketing? ROI measures return from all marketing costs including staff, software, and content creation, whilst ROAS focuses purely on revenue versus advertising spend. ROI gives you the full picture, ROAS helps evaluate specific ad campaigns.

How often should I report marketing ROI to stakeholders? Depends on your stakeholders. CFOs typically want monthly summaries with quarterly deep dives, CEOs prefer quarterly strategic reviews with monthly key metrics, and sales teams benefit from weekly lead reports.

What's a good marketing ROI benchmark? Target 5:1 across industries (£5 back for every £1 spent), though this varies by channel. Email marketing averages £36 per £1, SEO achieves 22:1 returns, and PPC typically delivers 200% ROI.

Why do my ROI calculations keep changing? ROI fluctuations are normal. Seasonal trends, attribution changes, different cost factors, and performance variations all affect results. The key is consistent methodology and accounting for organic growth.

What should I do if my ROI is below benchmarks? First, check your calculation methodology and cost inclusion. Then analyse channel performance, consider reallocating budget to better performing channels, and evaluate whether your attribution model reflects actual customer journeys.