What is ROI? GLOSSARY OF TERMS
Roi (return on investment) is an indicator of return on investment, reflecting the return on investment of a company in a project, advertising company or the company itself. Thanks to him, you can determine the most profitable investment strategy
To find out, use the following formula: ROI = (profit – investment) / investment * 100%. If the ROI is more than 0, then the advertising campaign is considered profitable. If less than 0, then unprofitable. If ROI = 0, then the profit from advertising is zero, you should review the advertising strategy and optimize it.
In marketing, ROMI is calculated instead of ROI. It is defined as follows: the amount of marketing expenses is subtracted from the profit from using the channel, the difference is divided by the same amount of expenses and multiplied by 100%. In this case, only advertising costs and the profit that the company received as a result of the advertising campaign are taken into account. In simple words: ROMI = (profit – marketing budget) / marketing budget * 100%.
Understanding the effectiveness of certain strategies is possible only with regular monitoring of investment in advertising.
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