ROI (Return on Investment) is a primary metric that assesses the profitability of a campaign on the basis of comparing the net profits to the overall investment incurred. A percentage expression, ROI is useful for businesses to gauge whether their marketing efforts are yielding enough returns on investment to warrant the incurred expenses.
High ROI indicates that an operation is truly contributing positively to corporate growth, and a low or negative ROI signals a rethink in strategy. Organizations can utilize regularly tracked ROI as the foundation on which informed decisions about budget utilization, campaign performance, and even long-term advertising strategies can be made, reallocating funds only into initiatives which deliver maximum outcome.