ROI (Return on Investment)
The ultimate measure of advertising success - whether campaigns generate more revenue than they cost
Traditional Background
ROI has always been the gold standard for measuring business investment success. In traditional advertising, calculating ROI was often challenging due to attribution difficulties, leading many campaigns to focus on intermediate metrics rather than actual returns.
Web3 Evolution
Web3's transparency makes ROI calculation more accurate and verifiable through onchain verifiability. Every transaction is recorded on-chain, enabling precise tracking of revenue generated from advertising campaigns using models like CPTx. This creates opportunities for highly optimized, profitable advertising strategies superior to quests or KOLs approaches.
Target Goals
Any serious advertising campaign should aim for positive ROI, meaning CAC is less than customer lifetime value. When achieved, this creates a scalable growth engine - spend less than you make from customers, and you have profit. The math is simple, but execution requires sophisticated tracking and optimization through behavioral onchain targeting.
Scalability Advantage
Positive ROI campaigns can theoretically scale to any budget size, making them incredibly valuable for growth. This is why performance-based models like CPTx are superior to vanity metric-focused approaches like CPM or quests.