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ROI Definition

Marketing Definitions

15 Oct 2019 • 1 min read • Austin shong

ROI Definition

What is ROI?

ROI definition: ROI stands for Return On Investment, it is a measure of how effectively an investment generates profit for a brand.

ROI – especially in marketing – can be applied to all types of “investment”, including:

  • Financial
  • Time
  • Resource

It aims to calculate whether the investment is well spent and that the brand is seeing adequate returns on what it puts in.

For example:

H&M may look to calculate the ROI of their Facebook advertising campaign, by measuring the number of dollars invested against the return in profit.

ROI has become a topic of debate in content marketing. Brands often invest a lot of time and money into this pursuit, but it is hard to calculate a direct ROI from specific pieces of content.

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