ROI
A profitability metric that compares the value returned from an investment against the cost of that investment.
Stands for
Return on investment
Formal definition
ROI stands for return on investment: a ratio that compares the net value created by an investment to the cost required to produce that value.
Plain-English explanation
ROI answers a simple question: did the money you spent actually come back with enough upside? Teams use it to judge whether a campaign, channel, or experiment was worth the budget.
Examples
- A team spends $2,000 on acquisition and attributes $6,000 in gross profit back to that spend. ROI is strongly positive.
- A launch drives many installs but little retained revenue, so ROI stays weak even though conversion volume looks healthy.
How it works
- Define the investment cost first, such as ad spend, creative production, or incentives.
- Measure the value returned from the same cohort or campaign window.
- Compare return versus cost so channels can be ranked on efficiency, not just volume.
How Attriax uses it
- Attriax provides the source, install, event, and revenue context teams need before they calculate ROI in their reporting stack.
- ROI usually depends on combining Attriax attribution data with ad-spend or finance data from outside the platform.
- Teams often review ROI next to ROAS, LTV, and CAC because those metrics answer different questions about profitability.