Return on Investment (ROI)

Created by  Kia Aagaard |  Last edited 07 Jul 13:41

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Definition

From the plumber’s or new school marketer’s point of view the most important task is to create a big profitable return on his or her marketing investment (M x ROI).

ROI is, of course, not new to marketing, but it has traditionally been the Achilles heel of most marketers. This has been largely due to the fact that non-digital medias, with large distance between exposure and channel, are much harder to measure the effect from than the new digital medias. This has traditionally led to M x ROI only being measured on an ad hoc basis and often over relative short time frames like a campaign or a quarter.