Marketing ROI (Return on Investment) refers to the measure of the profitability and effectiveness of marketing activities. It is calculated by comparing the revenue generated from marketing efforts to the costs incurred in those activities. Essentially, it evaluates how well marketing investments translate into financial returns.
To calculate Marketing ROI, the following formula is commonly used: Marketing ROI = Net Profit from Marketing / Cost of Marketing Investment × 100
This metric helps businesses assess the value of their marketing expenditures and make data-driven decisions to optimize their strategies for better financial outcomes.