# 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


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://help.daasity.com/core-concepts/metrics/retail-and-wholesale-metrics/promotion/promotion-roi-revenue-based.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.