a metric used to measure the effectiveness and efficiency of marketing efforts by calculating the financial return generated from marketing campaigns relative to their costs. ROMI is crucial for evaluating marketing performance and guiding future marketing investments and decisions.
To calculate ROMI, you can use the following formula:
Loading formula...Where:
- Incremental Revenue Attributable to Marketing represents the additional revenue generated by a marketing campaign or activity.
- Marketing Costs are the expenses associated with executing the marketing campaign or activity.
ROMI can be expressed as a percentage, and a higher ROMI indicates a more successful marketing investment. However, it’s essential to consider that ROMI may vary based on the marketing channels used, the type of business, and the objectives of the marketing campaigns.
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