ROI Glossary

July 9, 2018

ROI stands for return on investment. It refers to the actual gain you receive from your investment on a particular marketing campaign and is relative to the cost of the investment.

How Do You Calculate ROI?

ROI is calculated by dividing the benefit of an investment by the cost of an investment. The result is a percentage.

The formula is simple:
ROI = (Gain of investment – Cost of investment) / (Cost of investment)

Why is ROI a Popular Metric?

ROI remains a favorite measurement because it is simple to calculate and easy to understand. It is essentially a way to measure whether an investment is profitable.

When applied to mobile marketing, ROI can be used to compare the profitability of your campaigns so you can decide which campaigns to keep and which to discard.

Read More About ROI

Calculating the ROI for mobile app marketing has always been ...
At CleverTap, we maintain ongoing conversations with our customers to ...
Marketers know that smartphones changed the game. It’s been years ...
Back to Glossary
Related Keywords
Retention Rate Glossary

Retention rate is the percentage of users who come back to your app in order to perform a certain...

Read more
Lifetime Value (LTV)

Lifetime value (LTV) is also known as customer lifetime value (CLTV or CLV), and refers to the pr...

Read more
User Retention Glossary

User retention is a metric that measures how well you can keep users from uninstalling. Since mob...

Read more
Year-to-Date (YTD)

Year-to-date (YTD) is a period of time that is based on the beginning of the calendar year and up...

Read more