Giveaway ROI

Giveaway ROI (return on investment) measures how profitable a giveaway was by comparing the benefits obtained (the value of the leads generated, additional sales, visibility) against the costs incurred (the prize, the tool, promotion). Example: a giveaway that cost $500 in prize value and $300 in ad spend, but generated 2,000 qualified leads worth an average of $2 each to the business, shows a clearly positive ROI. Unlike the raw entrant count (a volume metric), ROI factors in the financial dimension and lets a brand objectively compare several campaigns against each other.