# Promotion ROI % (Revenue-Based)

**Description:** Return on investment of a promotion, based on incremental revenue relative to trade spend.

**Formula:** *ROI % = ((Incremental Sales – Trade Spend) ÷ Trade Spend) × 100*

**SQL Calculation:**

```sql
((SUM(incremental_dollars) - SUM(trade_spend)) / NULLIF(SUM(trade_spend),0)) * 100 AS promo_roi_percent
```

**Why It Matters:** Evaluates if promotional spend generated a positive return.

**Metric Type:** Result / Cost Efficiency

**Essence:** Lagging

**Frequency:** Per Promo Event

**Units:** Percentage (%)

**Suggested Breakdowns:** Retailer, Product, Promo Type

**Questions Answered:**

* Did we get more back than we spent on trade promotion?
* Which promotions delivered the best ROI?

**Potential Causes of Worsening:** Higher trade spend, lower incremental sales, poor retailer execution.

**Tactics to Improve:**

* Focus on high-ROI tactics (display + feature)
* Limit over-promotion
* Optimize trade allocation

**Related Metrics:**

* Incremental Sales
* Cost per Incremental Unit
* Contribution Margin ROI

**Related Explores:**

* Promo ROI Dashboard
* Trade Spend Allocation

**Related Sources:**

* URMS
* Trade Spend BSD