1. Marketing
  2. Digital Advertising

Ad Spend Return on Investment

Percentage

The return gained from the advertising spend. Determines the profitability and effectiveness of advertising campaigns.

Formula

[(Net Profit from Ad Campaign - Cost of Ad Campaign) / Cost of Ad Campaign] x 100

Example

If an ad campaign costs $1,000 and generates $5,000 in sales, the net profit is $4,000. The ROI is 400%.