What campaign metric requires entering the cost of each campaign to assess financial effectiveness?

The campaign metric that necessitates entering the cost of each campaign to evaluate financial effectiveness is Return On Investment (ROI). ROI is a crucial metric for determining how much profit or loss is generated relative to the costs incurred for the campaign. By calculating ROI, businesses can understand whether the financial expenditure on a campaign is yielding worthwhile returns in terms of revenue generated.

To compute ROI, one must consider both the total revenue generated by the campaign and the total costs associated with running it. This relationship highlights the importance of accurately recording campaign costs, as these figures are fundamental to determining the profitability and effectiveness of marketing efforts.

In contrast, other metrics like Campaign Revenue focus solely on the income generated without accounting for costs, while Lead Effectiveness pertains to the quality of leads generated rather than their financial implications. Similarly, Cost Per Acquisition calculates how much is spent to acquire a new customer but does not directly measure the financial returns in relation to the costs. Hence, ROI uniquely requires a comprehensive understanding of both income and expenditure to evaluate financial effectiveness accurately.