Measures the return generated from marketing investments.

What it Measures ?

How much money the business earns from what it spends on marketing.

Relevant StakeHolders 

CMOs, Marketing Managers

In-depth Use Case / Real-world Example

Marketing ROI (Return on Investment) helps organizations assess the effectiveness and profitability of their marketing efforts. It compares the revenue generated from marketing campaigns to the costs involved in running them. The formula typically used is: (Revenue Attributed to Marketing – Marketing Costs) / Marketing Costs. A positive ROI indicates that the campaigns are generating more revenue than they cost, while a negative ROI suggests inefficiencies. For instance, if a manufacturing company spends $100,000 on a digital campaign and generates $300,000 in new business directly attributed to that campaign, the ROI would be 2.0 or 200%. This KPI is especially useful when comparing different campaigns, channels, or time periods. It guides marketing teams in budget allocation, helping them double down on what works and eliminate waste. However, accurate attribution is essential. Companies often use CRM data and analytics tools to trace conversions back to specific marketing activities. A high Marketing ROI signals that marketing efforts are not just creative but commercially impactful.