What is a good marketing ROI?
A 5:1 revenue-to-cost ratio (400% ROI) is considered strong. A 10:1 ratio is exceptional. Anything below 2:1 may not be profitable after accounting for other business costs.
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A 5:1 revenue-to-cost ratio (400% ROI) is considered strong. A 10:1 ratio is exceptional. Anything below 2:1 may not be profitable after accounting for other business costs.
ROI measures overall profitability including all costs, while ROAS (Return on Ad Spend) specifically measures revenue generated per advertising dollar. ROI gives a broader financial picture.
Yes, a negative ROI means your investment lost money. If you spent $1,000 and only generated $800 in revenue, your ROI is -20%.
Calculate ROI at regular intervals - weekly for active campaigns, monthly for channel performance, and quarterly for overall marketing strategy evaluation.