Performance Marketing ROI

Performance marketing ROI (Return on Investment) measures the profitability of campaigns by comparing the revenue generated to the cost of running the ads. It’s a key metric to determine how effective your marketing efforts are.

Here’s how to calculate it:

ROI Formula:

ROI= Revenue from Campaign − Ad SpendAd Spend×100

For example, if you spend $1,000 on ads and generate $3,000 in revenue, your ROI would be:

ROI= 3,000 −1,000/1,000×100= 200%

A high ROI means your campaign is profitable, while a low ROI signals room for improvement. Optimizing targeting, ad creatives, and bidding strategies can help improve ROI in  marketing.