What is ROI in digital marketing?

ROI stands for ‘Return On Investment’. Digital marketing ROI is the measure of the profit or loss that you generate on your digital marketing campaigns, based on the amount of money you have invested. In other words, this measurement tells you whether you’re getting your money’s worth from your marketing campaigns. A simple method to measure ROI is ‘Revenue – Expenses = Profit.’

ROI stands for Return on Investment, and it refers to the amount of money a business earns in relation to the amount of money it spends on a marketing campaign or other business activity. In the context of digital marketing, ROI is a measure of the effectiveness of a digital marketing campaign.
To calculate ROI in digital marketing, a business needs to determine the total cost of a campaign and the revenue generated by that campaign. The ROI is then calculated by subtracting the cost of the campaign from the revenue generated by the campaign, and dividing that number by the cost of the campaign.
For example, if a business spends $10,000 on a digital marketing campaign and generates $20,000 in revenue from that campaign, the ROI would be calculated as follows:
ROI = ($20,000 – $10,000) / $10,000 = 1
In this example, the ROI is 1, which means that the business earned back its initial investment in the campaign and generated an additional $10,000 in revenue. A higher ROI indicates a more successful campaign, while a negative ROI indicates that the campaign cost more than it generated in revenue.