What is ROI(Return on Investment)?
Return on investment (ROI) measures the profitability of a particular investment.
From a marketing point of view, ROI can be divided into two metrics: ROMI and ROAS.
Return on marketing investment, or ROMI, is used to evaluate investment in marketing and help marketers make better decisions about allocating future investments. It’s calculated by the formula: ROMI = (income — costs) / costs × 100%
Return on advertising spend, or ROAS, is typically used to evaluate the effectiveness of a specific campaign, ad group, ad, or even keyword. General formula for calculating ROAS: ROAS = income from ad campaign / cost of ad campaign