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Marketing vocabulary · Marketing Metrics

ROI

Meaning in marketing, with examples

/ˌɑːr oʊ ˈaɪ/abbreviationCore term

In marketing, ROI means: Short for return on investment: how much profit or value you get back compared with what you spent, usually shown as a percentage.

In Turkish: yatırım getirisi, yatırımın geri dönüşü, ROI

How it is used

Said letter by letter. Managers ask about the ROI of a campaign, a channel or a new tool before they approve budget. A simple formula is (gain minus cost) divided by cost. Some teams use ROMI, return on marketing investment.

Example sentences

  1. The event was expensive, so the CFO wants to see the ROI before we book it again.

  2. Email gives us the highest ROI of all our channels.

Common collocations

  • measure ROI
  • deliver a strong ROI
  • positive ROI
  • ROI on marketing spend
  • KPIShort for key performance indicator: a measurable number that shows whether a team, campaign or business is reaching its most important goals.
  • marketing budgetThe amount of money a company sets aside for marketing activities, such as advertising, research, events and content, over a given period.
  • customer acquisition costThe average amount a company spends on marketing and sales to win one new customer, found by dividing total costs by the number of new customers.
  • customer lifetime valueAn estimate of the total profit or revenue a company can expect from one customer for the whole time that person keeps buying from it.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Marketing Metrics

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