Marketing ROI

Marketing ROI, or Return on Investment, measures the effectiveness of marketing expenditures. It calculates how much profit or revenue is generated for every dollar spent on marketing. To determine ROI, you subtract the cost of the marketing campaign from the total revenue generated, then divide that figure by the marketing cost. For example, if you spend $1,000 on a campaign and earn $5,000 in sales, your ROI is 400%. A positive ROI indicates a successful marketing strategy, while a negative ROI suggests the need for improvement or adjustment in marketing efforts.