Definition

The percentage of profit or loss made on the invested money.

Information

For instance: $200 profit / $1000 investment = 20% ROI

Theoretically, return-on-investment is easy to understand. Practically, you might face difficulty in understanding it when you try to monitor Costs in a multi-channel environment vs. Match outcomes.

In practice, competitors of ROI may be corporate politics (a sector aiming to place ROI-preventing material on the organization’s webpages) and individual preferences (as a company proprietor might want to seem #1 for a preferred keyword regardless of the expense of conversion rates).

Synonyms

Rate of profit and Rate of return.

More Helpful Articles

Check out other Glossary Articles on Online Advertising Glossary and Digital Marketing Glossary