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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