What does ROI measure in marketing?

ROI, or Return on Investment, is a crucial metric in marketing that evaluates the efficiency and profitability of investments made in advertising and other marketing activities. It provides insights into the financial returns generated relative to the costs incurred, allowing marketers to assess the effectiveness of their campaigns. By calculating ROI, businesses can determine which marketing strategies yield the best returns, facilitating informed decisions about budget allocation and optimization of marketing efforts.

In contrast to the other options, which aren't established marketing terms, Return on Investment clearly indicates the relationship between the gain from investments and the cost of those investments, making it a fundamental concept in assessing financial performance in marketing campaigns.