Financial Metrics
Return on Investment (ROI)
A performance measure used to evaluate the efficiency or profitability of an investment.
What is ROI?
Return on Investment (ROI) is the ultimate measure of accountability in marketing. It answers the question: "For every dollar I spent, how many dollars did I get back?"
Formula
((Gain from Investment - Cost of Investment) / Cost of Investment) * 100
ROI vs. ROAS
While ROAS (Return on Ad Spend) focuses specifically on gross revenue from advertising, ROI considers the net profit and accounts for all costs, including creative, software, and labor.