ROI, short for Return on Investment, measures how much value a campaign generates relative to what it cost. The basic formula is: (Net Profit ÷ Cost of Investment) × 100. A positive ROI means the campaign paid for itself and then some; a negative ROI means it cost more than it returned.
In social media, ROI isn’t always purely financial - it can include brand awareness, lead quality, or customer loyalty. The important thing is defining what “return” means for your goals before you start, so you can measure it meaningfully.