Performance
ROI (Return on Investment)
ROI is a measure of the profitability of a marketing or business investment, typically calculated as the return generated relative to the amount spent.
Definition
Return on Investment compares the profit generated by an initiative against its cost, usually expressed as a ratio or percentage — the core measure of whether a campaign paid off.
Why It Matters
ROI is how marketing proves its value to the business — it's the language finance and leadership teams use to evaluate whether a campaign worked.
Real-World Example
A D2C brand running performance campaigns tracks ROI at the channel level to decide whether to scale up Meta ads, Google Shopping, or influencer partnerships.
How It Connects
ROI ties together media spend, campaign performance, and business outcomes like revenue and customer lifetime value.