Marketing ROI

Marketing ROI measures the return generated by marketing spend.

Formula

ROI = (Revenue attributable − Cost) / Cost

Example

$12,000 revenue from a $4,000 campaign → ROI = (12,000 − 4,000)/4,000 = 2.0 (200%).

FAQs

Attribution?
Use models (first/last touch, multi-touch) to estimate attributable revenue.

Time horizon?
Consider lifetime value effects for long-cycle campaigns.