Daniel Coburn

Tag: ad spend

ROI … I keep hearing about it

by Daniel on Jan.14, 2009, under Work

ROI = Return on Investment, and as defined in Wikipedia

In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (realized or unrealized) on an investment relative to the amount of money invested.

From a marketing perspective it will boil down to this, if I put in $100 and I make $25 gain  my return was 25%.  Now it is important to look at the % vs. simply the $ gained.  Why?  Because I could invest $1000 and make $10 (1% ROI) or invest $50 and make $5 (10% ROI).  Even though the first made you more money (2x) the 2nd is still a better rate.  So do the $50 5x and you’ll be happy you did :)

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