ROI (return on investment) is a metric that shows how much value your marketing generates compared to what it costs. It proves whether your campaigns are driving real business results or just engagement vanity.
ROI measures the profit from marketing activities relative to costs. The formula is simple: (revenue − cost) ÷ cost × 100%. Positive ROI means your efforts are paying off; negative means you’re overspending.
Likes and comments are helpful signals, but ROI ties activity to outcomes like sales, qualified leads, or revenue. It helps teams prioritize channels and justify budgets.
Double down on high-performing channels, refine targeting, and test creatives and offers. Improve landing page experience, shorten forms, and integrate CRM data to close the loop.
Attribution is tricky. Multiple touchpoints influence a sale, so crediting a single post is hard. Use tracking links, CRM integration, and multi-touch models to get a clearer picture.
The basic way to calculate Return on Investment (ROI) is to divide the net profit (or gain) from an investment by the total cost of that investment. The result is typically multiplied by 100 to express it as a percentage.
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