Or ROI= (cost reduction+revenue growth)/total cost.
In online advertising, the return on investment refers to the income obtained by investing some money through advertising or other means. For an ideal example, you spent $5,000 on search engine advertising, and you made a profit of15,000 from sales or various businesses that followed.
Return on investment = profit from sales/advertising expenses *100% =15000/5000 = 300%.
Then this investment activity is very successful, because its return on investment is very high. In other words, the ultimate goal of sales activities is to get as much profit as possible with as little investment as possible. An in-depth analysis of the return on investment can provide a strong basis for you to allocate advertising budget and choose key points in the composition of search engines, product lines and even promotional activities themselves.
What is the return on investment:
ROI: ReturnOnInvestment。 The result of ROI is usually expressed as a percentage, that is, the input-output ratio, which is simply the degree of return on the investment of enterprises.