ROI Measurement in Advertising

ROI, or Return on Investment, in advertising measures how much profit is generated for every dollar spent on marketing. To calculate it, you take the revenue gained from an ad campaign, subtract the cost of the campaign, and then divide that number by the campaign cost. The result is often expressed as a percentage. A positive ROI means the campaign was profitable, while a negative ROI indicates a loss. This measurement helps businesses evaluate the effectiveness of their advertising strategies and make informed decisions about future investments in marketing.