ROI (Return on Investment)

What does ROI (Return on Investment) mean?

ROI (Return on Investment) is a financial metric used to evaluate the profitability of an investment or business venture. It measures the gain or return generated from an investment relative to the initial cost or expenditure. ROI is often expressed as a percentage.

In digital marketing, ROI is commonly used to assess the effectiveness of marketing campaigns, such as advertising, email marketing, and SEO efforts. It helps businesses determine whether their investments are yielding positive returns.

A positive ROI indicates that the investment is profitable, while a negative ROI suggests a loss. ROI analysis is essential for making informed business decisions and optimizing marketing strategies.