ROMI stands for Return on Marketing Investment. It is a metric used to measure the effectiveness and profitability of marketing campaigns and initiatives. ROMI helps businesses assess the financial return generated from their marketing efforts, precisely the amount of money invested in those activities.
Businesses commonly calculate ROMI by comparing the revenue generated from a marketing campaign or initiative to its associated cost. The formula for calculating ROMI is as follows:
ROMI = (Revenue – Marketing Cost) / Marketing Cost
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