Marketing Return on Investment (ROI)

Marketing return on investment, or marketing ROI, evaluates financial return relative to the money spent on marketing. One common approach compares the profit attributable to an initiative with its cost, then divides by that cost. The exact formula and which expenses are included must be stated before comparing results. A landscaping business may pay for website improvements and promotion long before repeat customers create additional value. Revenue alone is not profit, and attributing sales to one channel can be uncertain. ROI differs from customer acquisition cost, which estimates spending per new customer. Reliable evaluation considers costs, time horizons, and the quality of available evidence.