ANALYSIS OF BUDGET EFFECTIVENESS AND ROI (RETURN ON INVESTMENT) IN DIGITAL MARKETING FOR LABUAN BAJO COFFEE SMES

Abstract

This community engagement program aims to analyze and improve the effectiveness of digital marketing budgets and return on Investment (ROI) for coffee Micro, Small, and Medium Enterprises (MSMEs) in Labuan Bajo, Indonesia. As a super-priority tourism destination, Labuan Bajo coffee MSMEs increasingly rely on digital marketing but often without proper budget management or ROI measurement, resulting in inefficient spending. The target audience for this program was 25 coffee SME owners in Labuan Bajo. The implementation methods included interactive workshops, direct mentoring on budget allocation, and practical training on using analytics tools (such as Meta Business Suite and Google Analytics) to calculate ROI. The results show a significant improvement in participants' ability to set measurable marketing goals, track spending, and calculate ROI. Before the program, only 20% of participants tracked their digital ad spending against sales; after the program, 85% implemented basic ROI calculations. This engagement demonstrates that enhancing digital financial literacy is crucial for SMEs to optimize their marketing investments and compete effectively in a prime tourism area.