GLOSSARY OF TERMS

What is ROI?

What is ROI?

GLOSSARY OF TERMS

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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