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What is the ROI on ₹50,000 marketing spend that generated ₹80,000 in revenue?
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Calculate marketing ROI, net profit, and ROAS for a ₹50,000 campaign that generated ₹80,000 in revenue. Understand what good marketing ROI looks like for Indian businesses.
Why Marketing ROI Is Often Misleading
Spending ₹50,000 on marketing that generates ₹80,000 in revenue gives a ROI of 60% — calculated as (Revenue − Investment) ÷ Investment × 100. The ROAS (Return on Ad Spend) is 1.6× — Revenue ÷ Investment. Both numbers look acceptable in isolation but tell a misleading story if you don’t subtract the cost of producing the ₹80,000 worth of goods.
Real profitability needs three deductions from revenue: (1) the marketing cost itself, (2) the cost of goods sold (COGS), (3) overheads attributable to that revenue. A jeweller with 5% margins selling ₹80,000 of inventory from a ₹50,000 ad spend actually loses money. A SaaS company with 80% gross margins from the same numbers makes ₹14,000 net — modest but profitable.
Indian small businesses benchmark digital marketing ROAS at 3-5× for sustainable growth — below that, scale erodes profit. Three measurement upgrades that improve ROI accuracy: (a) UTM tracking on every ad click so you attribute revenue to the right campaign; (b) custom landing pages with unique phone numbers / WhatsApp links for offline conversion tracking; (c) cohort-based LTV analysis — a customer worth ₹80,000 today might be worth ₹3 lakh over their lifetime, which makes a higher CAC defensible.