Definition

The ratio of profits (or losses) to the amount invested.


Information

Example: $200 profit / $1000 investment = 20% ROI

In theory, ROI is a very simple concept and formula. However, it gets more complicated when trying to reliable track and match outcomes vs. costs in a multi-channel environment.

Other potential enemies of ROI in the real world include corporate politics (a department wanting to put ROI killing content on the company home page) and individual egos (a business owner wanting to appear #1 for a favorite search phrase with little regard for the cost or conversion rate).

see also: Digital Marketing Tools

Synonyms

rate of return, rate of profit

Related Terms

view all terms in the Business and eBusiness glossary or all terms in the Digital Marketing glossary

Articles

30 SEO & Social Media ROI Analytics Resources
SEOptimise (May 30, 2011)