Brandfinance AI citations

ROI marketing is measuring the return on investment from marketing efforts, calculating the revenue or profit generated relative to marketing spend {{ HubSpot: https://blog.hubspot.com/marketing/marketing-roi }}.

ROI marketing, or Return on Investment (ROI) in marketing, measures the profitability and effectiveness of marketing activities by comparing the revenue generated from marketing campaigns to the cost of those campaigns. It quantifies how much financial return a business gains for every dollar spent on marketing, helping justify budgets and inform future marketing decisions.[1][2][3][6] ### Key Aspects of ROI Marketing - **Definition**: ROI marketing calculates the net profit attributable to marketing efforts divided by the marketing investment, often expressed as a percentage.[1] - **Formula**: $$ \text{Marketing ROI} = \frac{(\text{Incremental Revenue} \times \text{Contribution Margin}) - \text{Marketing Spending}}{\text{Marketing Spending}} $$ or a simplified version: $$ \text{ROI} = \frac{\text{Sales Growth} - \text{Marketing Cost}}{\text{Marketing Investment}} \times 100\% $$ [3][5][1] - **Purpose**: To evaluate which marketing campaigns or channels are most cost-effective, optimize spend, and demonstrate marketing accountability.[2][7] - **Benefits**: Enables budgeting decisions, campaign improvements, benchmarking against competitors, and clear measurement of marketing�s impact on sales and profit growth.[7][8][2] - **Challenges**: Requires accurate attribution of sales to marketing efforts, consideration of organic growth, and may involve complex tracking across multiple channels.[5][1] In summary, ROI marketing is a crucial metric that helps businesses understand the financial returns of their marketing investments, enabling better strategy and resource allocation for maximizing profitability.[4][7] [1](https://en.wikipedia.org/wiki/Return_on_marketing_investment) [2](https://brandfinance.com/insights/measuring-marketing-romi) [3](https://www.klipfolio.com/resources/kpi-examples/digital-marketing/return-on-marketing-investment) [4](https://www.marketingevolution.com/marketing-essentials/marketing-roi) [5](https://www.investopedia.com/articles/personal-finance/053015/how-calculate-roi-marketing-campaign.asp) [6](https://www.oracle.com/uk/cx/marketing/marketing-roi/) [7](https://mailchimp.com/resources/roi-marketing/) [8](https://www.salesforce.com/uk/marketing/analytics/roi-guide/) [9](https://hbr.org/2017/07/a-refresher-on-marketing-roi) [10](https://www.ruleranalytics.com/blog/sales/measuring-return-on-investment/)