Is the Campaign Worth It?
Results
Visualization
How It Works
Net Profit = Revenue x Margin% - Spend. ROI% = Net Profit / Spend x 100. This is return-on-marketing-investment; always use margin-adjusted profit, not raw revenue, or you overstate ROI. Attribution is the hard part — be conservative about which revenue truly came from the campaign.
What Should You Do?
Scenario 1: the same spend at 30% margin yields only $600 profit (20% ROI). Scenario 2: halving spend but keeping revenue doubles ROI. Scenario 3: if you cannot attribute revenue confidently, assume less and treat ROI as an upper bound.
Frequently Asked Questions
Revenue or profit ROI?
Profit ROI (margin-adjusted) is the honest number; revenue ROI overstates because it ignores cost of goods.
How do I attribute revenue?
Use trackable links, promo codes, or holdout testing; over-attribution inflates ROI.
What ROI is good?
Varies by channel and margin, but positive and exceeding your cost of capital is the bar. Compare to CAC/LTV.
Authoritative References
- Investopedia — Marketing ROI — ROI formula and attribution caveats.
- FTC — Advertising Substantiation — Keep claims (like ROI) truthful and substantiated.