Analytics
ROI Calculation
ROI calculation is the process of computing the return on investment for marketing activities by comparing the net profit generated to the total cost of the investment. It quantifies the financial impact of marketing decisions.
Examples
A marketing manager calculates ROI by subtracting the $15,000 campaign cost from $60,000 in attributable revenue, then dividing by the cost for a 300% ROI.
Best Practices
Include all direct and indirect costs in your ROI calculation and account for time lag between marketing activity and revenue generation.