What is Marketing ROI?

Say a campaign cost 1,000 dollars and brought in 4,000 dollars of revenue. Subtract the cost to get 3,000, divide by the 1,000 you spent, and the return is 3, often written as 300 percent.

Use profit rather than revenue when you can. Revenue that costs you eighty cents on the dollar to deliver is nothing like revenue from a digital product. The version with margins in it is the one that should drive decisions.

Some marketing will not fit this formula honestly. Brand work, community, and content often pay off over months, and forcing a monthly ROI figure onto them produces a confident number that is mostly assumption. Report what you can measure and mark what you cannot.