ROI
ROI (Return on Investment) is a metric that measures the profitability of an investment. It helps you determine whether an ad campaign is generating a profit or running at a loss.
ROI is expressed as a percentage and is used to evaluate the effectiveness of your investments.
ROI is one of the key metrics in affiliate marketing.
How to calculate ROI:
ROI = (Revenue − Cost) / Cost × 100%
How to interpret ROI:
The ROI value provides a quick way to assess campaign results:
- ROI greater than zero — the campaign is profitable
- ROI equal to zero — break-even
- ROI less than zero — loss
Even a positive ROI may not always be enough for scaling.
Why analyze ROI:
ROI gives an overall picture of effectiveness without diving into individual metrics:
- to assess profitability
- to compare campaigns
- to make scaling decisions
- to monitor strategy
ROI is always analyzed together with profit and volume.
ROI in simple terms:
ROI shows whether you made or lost money.
Frequently Asked Questions (FAQ):
Is ROI more important than profit?
They complement each other.
Does a high ROI always mean success?
No, volume matters too.
Can ROI be increased without increasing the budget?
Yes, through optimizing the campaign setup.