ROMI: return on marketing investment

ROMI (Return on Marketing Investment) is the contribution profit above advertising spend for each unit of ad spend: (contribution − spend) ÷ spend.

Formula

ROMI = (contribution before advertising − advertising spend) ÷ advertising spend × 100%

Contribution is measured before ad spend is deducted. ROMI of 0% means advertising returned its budget but added no profit.

Worked example

  1. ROMI = (180,000 ₽ − 120,000 ₽) ÷ 120,000 ₽ × 100%

Result: 50%.

How to interpret it

Common mistakes

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Open “ROMI” with an example

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Editorial team: MARKMA Editorial Team. Reviewed: .