ROI – Return on Investment

Definition

ROI (Return on Investment) measures the total return on a marketing investment considering all costs – not just ad spend, but also personnel costs, tool costs, and agency fees. Unlike ROAS, which only looks at revenue vs. ad spend, ROI provides a more complete picture of profitability.

Formula

Example

A marketing campaign costs €10,000 total (€5,000 ads + €3,000 agency + €2,000 tools) and generates €8,000 profit. The ROI is (8,000 − 10,000) / 10,000 × 100 = −20%. Despite positive ROAS on ad spend, the total investment is not yet profitable.

Optimization Tips

Consider all costs in ROI calculation. Automate repetitive tasks to reduce personnel costs. Consolidate tools. Focus on channels with the highest ROI and scale them.