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Return on investment (ROI)

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Josh Pocock

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1y ago

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Every marketing campaign requires an initial investment of time and/or money. Return on investment is a metric that measures whether a campaign earned enough money to be worth the initial cost.

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Josh Pocock

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1y ago
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Q: Return on investment (ROI)
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Definition of 'Return On Investment - ROI'A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio. The return on investment formula:


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Return on investment is calculated by subtracting investment capital from the return, taking into account inflation, taxation and the time frame involved.


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Return on investment is the amount that you get back for investing in something. The formula is ROI=(Profit *100)/(Investment * number of years.)


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Return of investment is an essential aspect of the business. Keeping track of ROI is crucial for success with all your marketing activities. The benefit of tracking ROI(Return on investment) is that the business managers can track what marketing strategies are working for them and what processes need revamping. Every marketer feels pressure to prove the effectiveness of their marketing expenses.