Conditions for applying the metric

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The metric is an auxiliary tool. You should not make a decision about developing or closing a project based only on the ROI metrics. The coefficient requires ideal calculation conditions: precise data on income and expenses, specific time frames. In real circumstances, factors may arise that cannot be included in these calculations.

About the conditions of application of the metric.
For example, the second formula may have an incorrectly set time period. This situation occurs when the advertisement was effective, but the purchase was made after the marketing campaign was over. The client saw an advertisement that interested him and motivated him to buy, but took a long time to decide on the purchase of the product.

In addition, in the online store, prices can be presented in different currencies and change depending on various economic factors. ROI is not tied to the exchange rate and external circumstances that affect investment bangladesh whatsapp number database results.

Why do we need ROI?
ROI is not a conversion indicator. It is necessary when you need to collect information to make important decisions. For example, if you need to choose a social network to promote a project, introduce an affiliate program or remove it, decide on the sale of a particular service.

In marketing
While ROI helps determine the return on all investments, including the cost of producing a product, ROMI is used to assess the profit received from all marketing investments.

ROMI = ((profit - marketing investment size) / marketing investment size) x 100%

ROMI is a coefficient used to determine the return on marketing investments: rental of space for banners, costs of targeted advertising, rewards for participation in affiliate programs, etc.

Calculating ROI in Marketing.
In advertising
ROAS is a return on investment metric for advertising. ROAS takes into account the costs of a specific advertising campaign and is used to evaluate the effectiveness of advertising tools.

ROAS = revenue from advertising campaign / cost of advertising campaign

In SEO
ROI can be used to calculate the effectiveness of SEO activities aimed at increasing the profits of an online store. You can find out the actual income received from SEO using conversion rates. To do this, you need to estimate the cost of each target action and calculate the number of goals achieved. The ratio of the amount of income from all achieved actions to the costs of SEO will show the profit from promotion tools.