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Glossary · Digital Marketing

What is ROI (Return on Investment)?

ROI (Return on Investment) is a measure of how much profit an investment generates relative to its cost in digital marketing, it answers the core question: for every rupee spent on a website or campaign, how much did it return?

The ROI Formula

ROI = ((Revenue − Cost) ÷ Cost) × 100. Spending ₹50,000 on a campaign that generates ₹150,000 in revenue gives an ROI of 200%.

Why ROI Matters More Than Vanity Metrics

  • Traffic and impressions look impressive but don't pay the bills
  • ROI ties marketing spend directly to actual business revenue
  • It allows fair comparison between different channels — SEO vs PPC vs social

Want help putting this into practice? Our Google Ads team can walk you through it.