Return on Investment (ROI)
ROI (Return on Investment) is the profit generated relative to the total cost of an investment, expressed as a percentage. In advertising it accounts for all costs — not just ad spend — making it a truer profitability measure than ROAS.
Formula
ROI = ((Revenue − Total cost) ÷ Total cost) × 100%Example
Earn $9,000 from a campaign that cost $3,000 all-in → ROI = ((9,000 − 3,000) ÷ 3,000) × 100 = 200%.
Why it matters
ROI is the bottom-line question: did the money you put in come back with a profit? Unlike ROAS, it includes product costs, fees and overhead.
Put these metrics to work
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FAQ
What's the difference between ROI and ROAS?
ROAS = revenue ÷ ad spend (efficiency of the ad dollar). ROI = profit ÷ total cost (overall profitability). A high ROAS can still mean a low or negative ROI once all costs are counted.
What is a good marketing ROI?
A common benchmark is a 5:1 revenue-to-cost ratio (400% ROI), with 10:1 considered strong — but the right target depends on margins and payback period.