Marketing Glossary
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Return on Investment (ROI)

What is Return on Investment (ROI)?

Return on Investment (ROI) is a measure of the profitability of an investment, calculated by dividing the gain from the investment by the cost of the investment. It is expressed as a percentage or a ratio. ROI is used to measure the efficiency of an investment and to compare the efficiency of a number of different investments.

Why is ROI important?

ROI is important because it is a measure of the profitability of an investment. It is a way to measure the efficiency of an investment and to compare the efficiency of different investments. It is also a way to measure the performance of a business or investment over time. ROI is important because it helps investors and businesses make decisions about where to invest their money and how to allocate resources.

How can I use ROI?

ROI is a measure of the profitability of an investment. It is calculated by dividing the net gain from an investment by the cost of the investment. ROI can be used to compare the profitability of different investments, or to compare the profitability of an investment over time. It can also be used to evaluate the performance of a business or project, or to assess the efficiency of a company's use of resources.

Related Terms

Return on Ad Spend (ROAS)

Conversion Rate

Marketing conversion

Conversion Rate Optimization (CRO)