Marketing ROI Calculation

Marketing ROI (Return on Investment) measures the profitability of marketing activities. It is calculated by subtracting the cost of the marketing campaign from the revenue generated by it, then dividing that number by the campaign cost, and multiplying by 100 to get a percentage. The formula looks like this: \[ \text{Marketing ROI} = \left( \frac{\text{Revenue} - \text{Cost}}{\text{Cost}} \right) \times 100 \] A positive ROI indicates that the campaign generated more revenue than it cost, while a negative ROI suggests a loss. This metric helps businesses evaluate the effectiveness of their marketing strategies.