Return on marketing investment
Return on marketing investment (ROMI) is a metric used to measure the effectiveness of a marketing campaign in generating revenue. It calculates the profit generated by a marketing campaign compared to the cost of the campaign.
ROMI can be calculated using the formula:
ROMI = (Revenue from Marketing Campaign – Cost of Marketing Campaign) / Cost of Marketing Campaign x 100
For example, if a company spends $10,000 on a marketing campaign and generates $50,000 in revenue, the ROMI would be:
(50,000 – 10,000) / 10,000 x 100 = 400%
A ROMI of 400% means that for every dollar spent on the marketing campaign, the company earned $4 in revenue.
ROMI is a valuable metric for marketers to determine the success of their campaigns and make data-driven decisions on future investments.
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