Return Of Investment (ROI)

July 3,2012 in Glossary | No Comments

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.

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