What Is a Good Marketing ROI Percentage?
There is no single marketing ROI percentage that is good for every campaign. A good marketing ROI depends on the marketing channel, product margin, customer lifetime value, acquisition cost, campaign goal, attribution method, and measurement period.
For example, a campaign selling a high-margin product may need a different return from a campaign selling a low-margin product. A campaign designed to generate immediate sales may also be judged differently from one focused on building long-term customers.
This guide explains how to calculate marketing ROI, how to judge a good marketing return, and what can make the result higher or lower.
Calculate Marketing ROI
Calculate the return from your marketing investment using the marketing cost and revenue generated.
What Is Marketing ROI?
Marketing ROI measures the return generated by money spent on marketing.
It helps answer a simple question:
Did the marketing investment generate enough return to justify its cost?
Marketing ROI can be used to evaluate different activities, including:
- Online advertising
- Search engine marketing
- Social media campaigns
- Email marketing
- Content marketing
- Influencer campaigns
- Promotional campaigns
The important thing is to connect the marketing cost with the return that can reasonably be attributed to that investment.
Marketing ROI Is About Return, Not Just Sales
A campaign can generate a lot of revenue but still have a weak return if the marketing and related costs are high. Looking at the net result gives a more useful picture of performance.
How to Calculate Marketing ROI
The basic marketing ROI formula compares the revenue generated by marketing with the marketing cost.
Marketing ROI = (Marketing Revenue โ Marketing Cost) รท Marketing Cost ร 100
For example, suppose a business spends โฌ2,000 on a marketing campaign and generates โฌ5,000 in marketing-attributed revenue.
The calculation is:
(โฌ5,000 โ โฌ2,000) รท โฌ2,000 ร 100 = 150%
The campaign therefore produces a 150% marketing ROI based on these figures.
Another Simple Example
A business spends โฌ5,000 on marketing and generates โฌ8,000 in attributed revenue.
Marketing return = โฌ8,000 โ โฌ5,000 = โฌ3,000.
Marketing ROI = โฌ3,000 รท โฌ5,000 ร 100 = 60%.
This means the campaign generated a return equal to 60% of the marketing investment under this calculation.
Tip
Keep the calculation consistent. If one campaign includes additional marketing costs and another does not, their ROI percentages may not be directly comparable.
What Is a Good Marketing ROI?
This is where things get more interesting.
There is no universal number that automatically makes a marketing campaign successful.
A good marketing ROI depends on what the campaign is trying to achieve and how much it costs to acquire and serve each customer.
High-Margin vs. Low-Margin Products
Product margin can have a major effect on marketing performance.
A business selling products with high margins may have more room to spend on customer acquisition while still making a profit.
A business with very small margins may need much more efficient marketing to achieve a worthwhile return.
Customer Lifetime Value
The first purchase does not always tell the whole story.
A customer may buy once today and continue buying for several years.
If repeat purchases are reasonably attributable to the original marketing investment, customer lifetime value can make a campaign more valuable than its first sale suggests.
Customer Acquisition Cost
Customer acquisition cost shows how much a business spends to gain a customer.
If acquisition costs rise while customer value stays the same, marketing ROI can fall.
Keeping acquisition costs under control is therefore important when evaluating marketing investment ROI.
Campaign Duration
Some marketing campaigns produce results quickly.
Others take weeks or months before the full return becomes clear.
A campaign should be evaluated over a suitable period instead of judging it too early.
Attribution Method
Attribution can change the reported marketing ROI.
A customer may interact with several marketing channels before making a purchase. Deciding which channel receives credit can therefore affect the calculated result.
Be Careful With Attribution
Do not assume that every sale came from one marketing channel simply because that channel was the final interaction. Different attribution methods can produce different ROI results.
Marketing ROI Examples
Examples make marketing ROI percentage much easier to understand.
Example 1: Online Advertising Campaign
A business spends โฌ3,000 on an advertising campaign.
The campaign generates โฌ7,500 in attributed revenue.
Marketing return = โฌ7,500 โ โฌ3,000 = โฌ4,500.
Marketing ROI = โฌ4,500 รท โฌ3,000 ร 100 = 150%.
That looks like a strong result, but the business should still consider product margins and any other costs connected with those sales.
Example 2: Email Campaign
A business spends โฌ500 on an email marketing campaign.
The campaign generates โฌ1,500 in attributed revenue.
Marketing return = โฌ1,500 โ โฌ500 = โฌ1,000.
Marketing ROI = โฌ1,000 รท โฌ500 ร 100 = 200%.
The percentage is higher than the first example, but that does not automatically mean the email campaign is the better overall investment. The campaigns may have very different audiences, costs, scale, and customer values.
Example 3: Low-Margin Product
A business spends โฌ4,000 on marketing and generates โฌ6,000 in sales.
At first glance, the campaign appears profitable.
But if the business has high product and fulfillment costs, the actual profit created by those sales may be much smaller.
Revenue Is Not Always Profit
When judging marketing performance, do not assume that every euro of marketing-attributed revenue is profit. Product costs, fulfillment, discounts, and other relevant expenses can change the real return.
What Can Make Marketing ROI Look Better or Worse?
Two campaigns can spend the same amount and produce very different results.
Several factors can explain the difference.
| Factor | Effect on Marketing ROI |
|---|---|
| Product margin | Higher margins can leave more return after product costs. |
| Customer acquisition cost | Higher acquisition costs can reduce the return. |
| Repeat purchases | Returning customers can increase the long-term value of an acquisition. |
| Conversion rate | More conversions can improve the return from the same marketing spend. |
| Campaign duration | Results may change as a campaign continues and more data becomes available. |
| Attribution | Different attribution methods can assign revenue differently across channels. |
| Customer lifetime value | Long-term customer value can make an acquisition more valuable than the first sale suggests. |
Marketing ROI vs. ROAS
ROI and ROAS are related, but they are not the same metric.
ROI looks at the return compared with the investment. ROAS, or return on ad spend, focuses specifically on revenue generated from advertising spend.
| Metric | Measures |
|---|---|
| ROI | Overall return relative to the investment |
| ROAS | Revenue generated relative to advertising spend |
For example, a campaign can have a ROAS of 3, meaning it generated โฌ3 in attributed revenue for every โฌ1 spent on advertising. That does not automatically mean the campaign produced a 200% ROI because other costs may still need to be considered.
Simple Difference
ROAS asks: How much revenue did the advertising generate?
ROI asks: How much return did the investment produce after considering the investment cost?
A detailed comparison of these two metrics can be covered separately in our future ROI vs ROAS guide.
How to Judge Your Marketing ROI
Instead of asking whether one percentage is always good, look at the full picture.
Start by checking how much was spent and how much return the campaign actually created.
Then consider the product margin, customer value, acquisition cost, campaign period, and attribution method.
Finally, compare the result with similar campaigns or relevant business targets.
A Simple Rule
A marketing campaign is more attractive when it produces a worthwhile return at a reasonable cost and risk, while also supporting the business's longer-term goals.
How to Improve Marketing ROI
Improving marketing ROI does not always mean spending more money.
Often, the better approach is to make the existing marketing spend work harder.
Reduce Wasted Spending
Review where the marketing budget is going.
If a campaign, audience, or channel consistently produces weak results, consider reducing the spend or testing a different approach.
Improve Conversion Rates
More visitors do not always mean more customers.
Improving landing pages, offers, product information, checkout steps, or calls to action can help turn more visitors into buyers.
Lower Customer Acquisition Costs
A lower acquisition cost can improve the return from the same marketing budget.
Track how much it costs to gain a customer and look for ways to reach the right audience more efficiently.
Focus on Higher-Value Customers
Not every customer has the same value.
Customers who buy repeatedly can generate more long-term value than customers who make only one purchase.
Understanding customer lifetime value can therefore help when deciding how much to spend on customer acquisition.
Test Different Campaigns
Do not assume the first version of a campaign is the best version.
Test different audiences, offers, messages, landing pages, and channels where practical.
Keep the versions that produce better results and remove the ones that consistently underperform.
Measure Over the Right Period
Some campaigns need time before their full return becomes clear.
Judging a campaign too early can make a good investment look weak. Waiting too long can also allow poor spending to continue.
Simple Tip
Give each campaign a clear goal and measurement period before judging its performance. This makes it easier to tell whether the marketing investment is actually working.
How Marketing ROI Compares With Other Industries
Marketing ROI can be compared with other types of business investment, but the comparison needs care.
Marketing campaigns often have different risks, costs, time periods, and measurement methods from investments in equipment, real estate, technology, or other business assets.
For a broader look at how returns differ between sectors, see our guide to ROI by industry.
Do Not Compare Unrelated Returns Too Quickly
A marketing campaign and a long-term business investment may both have an ROI percentage, but that does not mean their results can be ranked directly. Consider the investment period, risk, costs, and purpose first.
Marketing ROI Checklist
Before deciding whether a campaign is performing well, check these points:
- How much did the marketing campaign cost?
- How much revenue can reasonably be attributed to it?
- What product or service costs reduce the return?
- What is the customer acquisition cost?
- Could customers make repeat purchases?
- What attribution method is being used?
- How long has the campaign been running?
- How does the result compare with similar campaigns?
These questions give a much clearer picture than looking at the marketing ROI percentage alone.
Frequently Asked Questions About Marketing ROI
What is a good marketing ROI percentage?
There is no single percentage that is good for every marketing campaign. A suitable return depends on product margins, acquisition costs, customer value, campaign goals, risk, and measurement period.
What is marketing ROI?
Marketing ROI measures the return generated from a marketing investment compared with its cost. It helps businesses evaluate whether their marketing spending is producing a worthwhile return.
How do you calculate marketing ROI?
Marketing ROI is generally calculated by subtracting marketing cost from marketing revenue, dividing the result by marketing cost, and multiplying by 100.
Is a 100% marketing ROI good?
A 100% marketing ROI can be a strong result, but whether it is good depends on the campaign's costs, risk, margins, customer value, and measurement period.
What is the difference between marketing ROI and ROAS?
Marketing ROI measures return relative to the investment, while ROAS measures revenue generated relative to advertising spend. ROAS does not necessarily account for all costs involved in generating the sale.
Why can marketing ROI change over time?
Marketing ROI can change because of changes in advertising costs, conversion rates, customer behavior, pricing, competition, customer acquisition costs, and repeat purchases.
How can a business improve marketing ROI?
A business can improve marketing ROI by reducing wasted spending, improving conversion rates, lowering acquisition costs, targeting higher-value customers, testing campaigns, and measuring results over an appropriate period.
Final Thoughts
A good marketing ROI is not defined by one universal percentage.
The right result depends on what the campaign costs and what it produces.
Look beyond revenue. Consider margins, customer acquisition cost, repeat purchases, customer lifetime value, attribution, and the time needed to generate the return.
Most importantly, compare similar campaigns using consistent measurements. That gives a much more useful picture of whether the marketing investment is actually working.
Calculate Your Marketing ROI
Calculate the return from your marketing investment using your marketing cost and attributed revenue.