Glossary
ROI
Profit as a share of what was spent: ROI = (revenue − spend) / spend × 100%. Spend $1,000, earn $1,500 back, and the ROI is 50%. The standard way media buyers compare campaigns of different sizes.
Also called: return on investment.
ROI normalizes profit by spend, so a $200 test and a $20,000 campaign can be compared. A campaign at 30% ROI on $10,000 makes $3,000; at 300% on $500 it makes $1,500. Both numbers matter: ROI says how efficient the setup is, profit says how much money it makes.
Some dashboards show ROAS instead: revenue divided by spend, without subtracting it. 150% ROAS is 50% ROI.
Related terms: Profit, CPA, EPC, Budget forecast.