Marketing ROI

Marketing ROI (Marketing Return on Investment) measures the net profit generated for every dollar invested in marketing. Unlike ROAS which measures revenue, Marketing ROI factors in production and shipping costs.

Calculation: Marketing ROI = (Profit Attributable to Marketing - Marketing Cost) / Marketing Cost x 100.

Example: you spend $5,000 on Meta Ads, generate $25,000 in revenue with a 20% net margin. Net profit = $5,000. ROI = ($5,000 - $5,000) / $5,000 = 0%. Despite a 5x ROAS, your actual ROI is zero.

This is why ROAS alone is insufficient. Fullmetrix calculates POAS (Profit on Ad Spend) which gives a more realistic view of advertising profitability.