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Analytics · Answer

How do I measure marketing ROI?

Measure marketing ROI by dividing the net profit from marketing-driven revenue by your total marketing spend, then expressing it as a percentage or ratio. Track it per channel using proper attribution, and pair it with customer acquisition cost and lifetime value. Gigde reports 65% better ROI for clients through channel-level measurement.

The core formula is (revenue from marketing minus marketing cost) divided by marketing cost. A result of 1, or 100%, means you doubled your money. Use net profit rather than gross revenue for an honest figure.

Attribution makes the number trustworthy. Without tracking which channels and campaigns drive revenue, ROI is a guess. Use analytics, UTM tagging, and CRM data to connect spend to closed revenue per channel.

ROI is most useful alongside two other metrics: customer acquisition cost (CAC) shows what each customer costs to win, and lifetime value (LTV) shows what they're worth. A healthy LTV-to-CAC ratio confirms the ROI is sustainable.

Gigde builds measurement into every engagement, reporting channel-level ROI so spend shifts toward what works — a key reason clients see 65% better ROI. Request a free growth plan at contact@gigde.com.

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