Formula
Marketing ROI = (Revenue from Marketing – Marketing Cost) ÷ Marketing Cost × 100
Calculation Example
If a company spends $10,000 on marketing and generates $50,000 in revenue, Marketing ROI = ((50,000 – 10,000) ÷ 10,000) × 100 = 400%
Data Source
Google Ads, CRM software, financial reports
Tracking Frequency
Monthly, Quarterly, Annually
Optimal Value
A positive ROI indicates profitable marketing efforts.
Minimum Acceptable Value
A negative ROI suggests marketing spending is ineffective.
Benchmark
Industry benchmarks: SaaS ~300-800%, E-commerce ~200-600%
Recommended Chart Type
Bar chart (to compare campaign performance), Line chart (to track trends)
How It Appears in Reports
Displayed in marketing reports to assess profitability of marketing campaigns.
Why Is This KPI Important?
Indicates how effectively a company converts marketing spend into revenue.
Typical Problems and Limitations
Does not account for long-term brand awareness or delayed conversions.
Actions for Poor Results
Optimize marketing channels, reduce unprofitable ad spend, improve conversion rates.
Related KPIs
Cost per Lead (CPL), Customer Acquisition Cost (CAC), Return on Investment (ROI)
Real-Life Examples
A SaaS company improved Marketing ROI by 50% by shifting budget from paid ads to SEO.
Most Common Mistakes
Focusing only on short-term ROI without considering customer lifetime value.
