What is ROI? (Return on Investment)
ROI measures the profit generated relative to the amount invested. Unlike ROAS, it accounts for costs beyond ad spend.
Formula
ROI % = (Profit − Ad Spend) ÷ Ad Spend × 100
Example
Spend $1,000, earn $4,000 revenue at a 25% margin → gross profit $1,000, so ROI = (1,000 − 1,000) ÷ 1,000 = 0%. You broke even despite a 4x ROAS.
Why ROI matters
ROI is the truer profitability metric because it factors in margin. A campaign can show a strong ROAS yet a negative ROI when product costs are high.
What's a good ROI?
Any positive ROI means the campaign made money; the higher the better, but sustainable targets vary by industry and margin.