Marketing ROI

The basic formula is (revenue attributable to marketing − marketing cost) ÷ marketing cost. The hard part is attribution: knowing which revenue marketing actually caused, across long sales cycles and untrackable touchpoints.

Practical ROI measurement uses ranges, not false precision: blended ROI (total revenue ÷ total marketing spend) as the anchor, channel-level estimates beneath it, and payback periodPayback PeriodThe time it takes to recover the cost of acquiring a customer. as the cash-flow reality check.

ROI framing also changes decisions about people. A fractional executive whose strategy lifts close rates pays for themselves differently than an ad budget — both should face the same test: what did this dollar return?