What is a good ROI and how to actually measure it ?

Marketing can be a data jungle—whether you're running B2B campaigns, testing B2C strategies, or just trying to make sense of all the numbers flying your way. And sooner or later, the same question hits: what is a good roi?
Let’s make it simple. No jargon, no overcomplication—just a clear, honest look at what ROI really means, and how to tell if your efforts are paying off.

First of all, what is ROI ?

ROI stands for Return on Investment. It’s how you measure whether your marketing spend is actually doing its job. In plain terms, it tells you how much profit you’re making compared to what you’re putting in.

How to calculate ROI ? Here’s the basic formula:

ROI = (Net Profit / Investment Cost) × 100

Let’s say you spend $1,000 on a basic email campaign:

• $700 goes to an email marketing tool and ad spend

• $300 to a freelancer who helps write and design the emails

The campaign brings in $1,800 in profit from customer purchases.

Here’s the math:

($1,800 - $1,000) / $1,000 × 100 = 80%

That means for every $1 you spent, you got $1.80 back.
So you didn’t just cover your costs—you made a profit of $0.80 on each dollar.

Net Profit means everything you earned after subtracting all related costs—ads, tools, contractors, software, etc. Don’t just look at revenue; look at what’s actually left in your pocket.

ROI helps you connect your efforts to outcomes. It’s your reality check and your guide to smarter decisions.

Management guru Peter Drucker once said:

“If you can’t measure it, you can’t improve it.”

This idea sits at the heart of marketing ROI. If you're not tracking your results, you're flying blind.

How do you actually use ROI in your marketing strategy?

1. Start with clear goals

Before you run any campaign, ask yourself: What am I trying to achieve?
Is it more leads, more sales, better brand awareness? The clearer your goals, the easier it is to track if your ROI is good or not.

Try using SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).
Example: “Increase online sales by 10% in the next 3 months through email marketing.”

💡 SMART goals help with conversion tracking (tracking the exact actions users take after visiting your site).

2. Choose the right KPIs

Your KPI (Key performance indicator) is just a fancy way of saying "the numbers that matter most." They help you measure progress toward your goals and tell you whether your strategy is working.

Depending on what you're aiming for, your KPIs might include things like:

• Website traffic : how many people are visiting your site

• Conversion rate : the percentage of visitors who take a desired action (like signing up or making a purchase)

• Cost per lead : how much you're spending to generate each potential customer

• Customer acquisition cost (CAC) : the total cost to gain one new paying customer

• Email open rates : how many recipients are actually opening your marketing emails

• And, of course, Return on Investment (ROI) – how much you're getting back for what you put in

Make sure your KPIs are directly tied to your actual goals. For example, if your goal is to generate leads, don't just focus on driving more traffic—track lead quality and how many of those visitors turn into real prospects or customers.

Want to go deeper into organic growth? Check out Everything You Need to Know About Blog SEO to make sure your blog is set up for long-term traffic and ROI.

3. Track all your costs (even the hidden ones)

A common mistake in measuring ROI? Only counting the obvious costs—like ad spend—while completely ignoring the hidden ones.

But here’s the truth:
Marketing isn't just about the money you pour into ads. It also includes things like:

• Tools and software subscriptions (email platforms, SEO tools, CRMs…)

• Agency or freelancer fees

• Salaries or hourly rates of the team members working on the campaign

• Content creation costs (videos, graphics, blog writing)

If you're unsure where to start, here’s a breakdown of the best blogging platforms in 2025 to help you choose the right one based on your budget and needs

• And even your time—because time is money, too!

The more precise and complete your cost tracking is, the more realistic and useful your ROI calculation will be. If you leave things out, your ROI might look better than it actually is—and that can lead to bad decisions down the line.

Use a spreadsheet or project management tool to log all expenses as they come up. That way, you won’t forget anything when it's time to crunch the numbers.

Your marketing strategy needs to be industry-aware. If you're just getting started, here's how to start digital marketing the right way.

4. Use quality data, not just any data

Your ROI is only as good as the data behind it. If your numbers are outdated, incomplete, or coming from unreliable sources, the results won’t mean much—and worse, they could lead you in the wrong direction.

To make smart decisions, you need clean, accurate, and up-to-date data. That means pulling insights from trustworthy sources like:

• Website analytics (e.g., Google Analytics) to see how visitors behave

• CRM tools to track leads, customer journeys, and deal stages

• Email marketing platforms for open rates, click-throughs, and conversions

• Social media insights to monitor engagement and reach

• Paid ad dashboards (like Google Ads, Meta Ads, or LinkedIn) for cost and performance metrics

Good data is essential for proper attribution—figuring out which channel (SEO, email, paid ads, etc.) actually led to a conversion. Without it, you might be giving credit to the wrong part of your funnel.

5. Think long-term, not just quick wins

Not all marketing efforts deliver instant results—and that’s okay. Some strategies, like content marketing, SEO, or brand building, are slow burners. They take time to gain traction, but once they do, they can deliver massive returns.

Just because a campaign doesn’t explode in the first few weeks doesn’t mean it’s failing. In fact, some of the most effective tactics don’t shine until months later.

That’s why it’s crucial to:

• Set realistic timelines based on the strategy you’re using

• Track performance consistently over weeks, months, or even quarters

• Avoid pulling the plug too early just because early ROI looks low

A blog post might bring in 10 leads in month one—but 1,000 over the next year. Don’t miss the forest for the trees.

Organic growth takes time. SEO efforts often have a compounding effect—the more consistent you are, the better your rankings and ROI become over time.

Need help organizing your blog content? Try these Top 5 Blog Post Templates for easier writing and better structure.

And don’t forget: whether you’re using a subdomain or subdirectory for your blog also affects SEO and performance.

So, what is a good ROI?

Let’s be real — there’s no one-size-fits-all answer. A "good" ROI depends on your industry, your goals, and the type of campaign you're running. But here are a few general benchmarks to keep in mind:

• Over 100% ROI usually means you're in the green — you're earning more than you spent.
  Example: You spend $500 and generate $1,200 in revenue — that’s a strong return.

• Hitting (or beating) your SMART goals is another solid indicator.
  If you aimed for a 10% increase in leads and hit 15%, that’s a win — even if the dollar ROI looks modest.

• Quality > quantity — especially in B2B marketing.
  Ten high-quality leads who are ready to buy are far more valuable than 1,000 random website visitors who bounce in five seconds.

Define what success looks like before launching your campaign. That way, you’re not just measuring ROI — you’re measuring the right ROI.

But, to put things into perspective, let’s take the stock market as an example. When people invest in big U.S. companies (through something called the S&P 500, which is like a report card for 500 top companies), they’ve historically made about 10.5% profit per year.
So, many people say:

"If I can get more than 10.5% ROI, that’s pretty good."

But ROI changes depending on the industry you’re in. Some industries are just more profitable than others. For example, tech companies (like software or apps) usually earn way more than, say, farming equipment or clothing.

According to data from CSIMarket (2022), here are the average ROIs by industry:

• Technology: 28.87% : super high, because tech grows fast and has low costs.

• Capital goods: 16.19% : stuff like machinery, tools, etc.

• Basic Materials: 15.26% : like metals, chemicals, etc.

• Health care: 12.62% : a growing industry, especially with aging populations.

• Retail: 12.18% : stores, e-commerce, etc.

• Energy: 11.85% : oil, gas, renewables, etc.

So, if you're looking at your ROI and it’s, let’s say, 15% — that’s great if you're in retail. But maybe not so impressive if you're in tech, where 25%+ is normal.

The point is: Don’t compare your ROI to a random number — compare it to what’s average in your industry. That gives you better context to know if you’re really doing well.

Why is ROI important?

Whether you’re running a business or thinking about investing your money, you want to know if what you're putting in is actually worth it, right? That’s exactly where ROI comes in.

A good ROI gives you a clear picture of whether something is working — or not. It helps you decide if an investment is a smart move or too risky to mess with.

For example:
Let’s say you’re thinking about funding a new startup. Sounds exciting — but risky. If you know the ROI on similar startups has been pretty low, or even negative, you might decide to pass and go with something more stable — like investing in an established company that’s already delivering steady returns.

It’s the same for businesses. Imagine a company considering new technology — maybe a fancy tool or automation system. If that tech flopped for others in their industry, they’ll think twice. On the flip side, if others saw strong returns from the same investment, it’s a signal that it might be worth the budget stretch.

According to a report cited by Marketing Essentials:

Organizations that measure their marketing ROI are 1.6 times more likely to receive higher budgets. 

This suggests that tracking ROI can positively influence budget allocations and executive support.​

ROI helps you make smarter, more confident decisions — whether you're investing your own money or managing company resources.

Common ROI mistakes to watch out for

ROI is a powerful metric, but it’s not perfect. Relying on it too heavily—or interpreting it out of context—can lead to short-sighted decisions. Here are some of the most common pitfalls to watch for:

Too focused on the short term

ROI often highlights immediate results, but it doesn’t always reflect long-term value.
A campaign might seem underwhelming in the first few weeks, but if it brings in loyal customers who stick around and spend more over time, the return can grow significantly. That’s where customer lifetime value (CLV) becomes crucial.

Attribution can be complicated

In multi-channel marketing, it’s hard to pinpoint exactly which touchpoint led to a conversion.
Was it the blog post, the email, the ad, or the social media post?

Attribution models—especially multi-touch models—help distribute credit more accurately across channels.

Instead of saying “Facebook Ads did it all,” a multi-touch model might say:

• 30% of the credit goes to the blog post,

• 40% to the email,

• 30% to the ad—because each played a role in the customer journey.

Doesn’t account for intangible value

ROI can’t measure things like brand awareness, customer trust, or long-term reputation.
These factors might not show up in a spreadsheet, but they’re often the reason someone chooses you over a competitor—especially in B2B.

Blogging is a powerful way to build that kind of trust — but only if your content is discoverable and credible. Inblog, a CMS tool, ensures your blog is fast, structured for SEO, and built for long-term value beyond just short-term metrics.

Not everything has a dollar value

Some initiatives are meant to educate, support, or engage your audience—not just sell.
These efforts might not generate immediate revenue, but they lay the foundation for future growth and stronger customer relationships.

Use ROI as part of a broader measurement strategy. Pair it with qualitative feedback, long-term metrics, and strategic insights to get a fuller picture of what’s working—and why.

Who actually uses ROI?

ROI isn’t just for finance geeks or investors — it’s used by all kinds of people and businesses to figure out if something’s worth it. Let’s break it down by who uses ROI and how:

1. Investors

Investors use ROI to help decide whether or not to put money into a business, project, or even stocks. But they don’t just look at the percentage — they also care how long it takes to get that return.

• A high ROI (like 150%) might sound great…

• But if it takes 3 years to see any money back, that’s a long wait.

• Some investors might prefer a lower ROI (say, 125%) if they can get their money back faster — like in 2 years.

It’s all about finding that sweet spot between profit and time. The faster they get returns, the sooner they can reinvest in something else.

2. Small business owners

Small businesses also rely on ROI — especially when they’re thinking about buying new equipment, software, or inventory.

Let’s say a bakery is thinking about buying a $10,000 oven. They’ll ask:

"Will this oven help us make more money? And how long will it take before it pays for itself?"

They might do some research or look at competitors to see if it’s a smart move. And if the return doesn’t look strong — or if the cost is too high — they might hold off, look for a cheaper vendor, or delay the purchase until the timing is better.

So for small businesses, ROI helps with smart budgeting and avoiding unnecessary risks.

3. Marketing teams

Marketers use ROI to figure out if their campaigns are actually making money. If a company spends $5,000 on ads, and that leads to $15,000 in sales — great ROI!

But if the ROI is low or unclear, marketers might:

• Try new strategies

• Target a different audience

• Or find cheaper ways to get results (like organic content or social media)

At the end of the day, ROI helps marketers prove the value of what they’re doing and make better decisions moving forward.

So, whether you're investing, running a small business, or building ad campaigns, ROI is your tool for asking:

"Is this helping us grow, or just draining our budget?"

Final thoughts:

ROI is super useful. It gives you clarity and helps you make better decisions.
But don’t obsess over it — it’s one metric among many. Combine it with insights from your customers, your team, and your long-term goals to get the full picture.

In the end, a good ROI isn’t just about big numbers. It’s about smart strategies, hitting your goals, and building a sustainable marketing machine that works over time.

Long-term growth starts with smarter tools.
Inblog helps B2B marketers turn content into real business results — consistently, and without complexity.