Marketing ROI
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Marketing ROI is a related term to Return on Marketing Investment (ROMI) to determine the marketing effectiveness of various marketing activities. The objective is to optimize marketing spend for the short and long term in support of the brand strategy by building a market model using valid, objective marketing metrics. Improving ROMI and marketing ROI leads to improved marketing effectiveness, increased revenue, profit and market share for the same amount of marketing spend.

Definition

Marketing ROI differs from Return on Marketing Investment in that it uses the ROI paradigm. Mathematically, the results provide the same support in the decision making process in choosing more effective marketing activities. ROI however is a language more used with financial counterparts within the organization.

Marketing ROI is related to ROMI and is calculated as follows:
((Incremental contribution margin – marketing investment) ÷ marketing investment) * 100%.

Marketing ROI is also:

(mROMI – 1) * 100%

For example, if a company spends $100,000 on a direct mail piece and it delivers $500,000 in incremental revenue then the ROMI factor is 5.0. If the incremental contribution margin for that $500,000 in revenue is 60%, then the margin ROMI (the amount of incremental margin for each dollar of marketing spend is 3.0 (= 5.0 x 60%). With a 3.0 mROMI, the Marketing ROI is 200%.

Marketing ROI 1st-2nd-3rd.com

Definition

Marketing ROI is also:

Marketing ROI
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