On this page, you will find out what ROMI is and how to calculate it. Of course, it will be enhanced with a ROMI calculation example for a better understanding.
What is ROMI?
ROMI means Return on Marketing Investment. Consequently, this metric represents the cost-efficiency of our investments, but unlike ROI that deals with a wide range of business investments, ROMI is purely a marketing-related metric. Context and media ads, SEO promotion, email newsletters, etc. — ROMI is about all that. It shows how your marketing activities work, if they generate profits, or if maybe they turn out to be loss-making.
Put simply, what does ROMI stand for? It shows if your business is profitable.
ROMI marketing value: Why do we need this metric?
ROMI helps us to detect profitable and loss-making promotional activities and to redirect funds to more effective campaigns. It’s especially important when our budget is strictly limited. The ROMI metric is typically used by brands/marketers that deal with clients' engagement and direct sales of products and services. The Return on Marketing Investment formula is a perfect way to evaluate the performance of various promo activities aimed to boost sales.
What is considered a good ROMI?
In general terms, ROMI should exceed the 100% level. If it does, it means that the marketing strategy is profitable, every dollar spent returns and brings income. Though, in some channels like context ads, the 20% ROMI is considered good enough. Stats also show that the email channel has the highest ROMI, which exceeds the 1 200% level.
If your ROMI is lower, it’s not the end of the world, it just shows that you need to work on your marketing strategy.
How to calculate ROMI?
The ROMI formula is complex enough. And it takes lots of steps to find out your ROMI results.
But we enable you to calculate your campaigns’ results easily. You just need to enter numbers in the respective fields of the calculator given above and our system will automatically calculate everything for you.
With our calculators, you’ll save lots of time.