Return on Investment (ROI)

Return on Investment is a metric used to measure the profitability of an investment. ROI is a direct percentage of revenue compared to expenses during marketing activities. ROI is calculated by subtracting cost from the revenue and dividing by total costs.

ROI is a critical indicator for overall business growth. It evaluates performance and campaign effectiveness across all channels. High ROI indicates campaign success while low ROI may indicate improvement points for brands.