What is ROI or return on investment?

Indicator used to assess the effectiveness of an advertising campaign, by looking at the relationship between the cost of the investment made and its resulting benefits (sales, customers, etc.).

Although there is no fixed formula, and the methodology employed varies between companies, a fairly standard approach is to subtract investment from income, multiply the result by a hundred and divide the outcome by the investment again; the final percentage providing an estimate of a campaign's benefits or losses.

Acronym or abbreviation:
ROI: Return On Investment

Other denominations:
Return on investment

 
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