What do we understand by return on investment (ROI)?
It is very frequently used by online marketers to measure the efficiency of an investment and it is calculated by using the
following simple mathematical formula:
ROI = (Gains - Investment Costs) / Investment Costs
The obtained result is expressed in percentage or a ratio.
Any online business owner needs solutions to track the efficiency of his activity for which he needs quantifiable measures like
the ROI. Tracking each of your online marketing activity is essential to see which of the activities have the expected results
in our case the ROI and which are those where further measures will be needed. It is evident that we need positive value of the
ROI and as high as possible otherwise our activity is not profitable. Let's suppose we have achieved a ROI of -50% which means
that we only gained half of the whole investment costs turning out to be unproductive.
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