Definition
Most marketers track email ROI but few calculate true per-campaign profitability. True profitability subtracts every cost associated with the campaign: platform fees allocated per send, design and copywriting time, list management overhead, testing tools, and any paid promotion costs. A campaign that generates 5,000 in revenue may appear successful until you subtract 3,500 in total costs. Tracking per-campaign profitability reveals which campaign types, audience segments, and content approaches actually generate positive returns.
Related Glossary Terms
A/B Testing
A/B testing in email marketing is the practice of sending two variations of an email to a small sample of your list to determine which version performs better before sending the winner to the remaining subscribers.
ARPU (Average Revenue Per User)
ARPU (Average Revenue Per User) is a metric that measures the average revenue generated per email subscriber over a specific period, used to evaluate list value and campaign effectiveness.
Attention Rate
Attention rate is the percentage of email opens that last longer than 5 seconds, distinguishing genuine reads from passive opens, preview-pane views, or Apple MPP auto-loads.
Bounce Rate
Email bounce rate is the percentage of emails that were rejected by the receiving server before reaching the recipient. It is a key indicator of list health and data quality.
Campaign Internal Rate of Return (IRR)
Campaign IRR is the annualised return rate earned by an email campaign, accounting for the timing and magnitude of costs and revenue across the campaign's full lifecycle.
Campaign Lifted Revenue
Campaign lifted revenue is the additional revenue generated by an email campaign beyond what would have occurred without it, measured via a holdout group or statistical lift analysis.