Definition

ROI is defined as the return on investment. It indicates the percentage ratio between the investment and the net profit from it. Due to the simplicity of calculation, this metric is very popular. The required ROI to individual campaigns can be included in the marketing plan and KPIs.

Application

ROI Calculation Formula:  

ROI (%) = revenue value / cost of investment * 100  

In marketing, we encounter ROI metrics for both individual ads or campaigns. Using these calculations, you will have an idea of what the actual ROI will be.