Return on Marketing Investment (ROMI), also known as Marketing ROI, measures the financial contribution generated by marketing to the overall revenue divided by the marketing budget invested.
Calculation
Return on Marketing Investment = Financial contribution generated by marketing / Marketing Spend
Reasons to track ROMI
ROMI is one of the most critical KPIs in marketing. In short, this metric allows marketers to estimate the overall effectiveness and profitability of their marketing efforts.
How can tracking the ROMI help you to become more data-driven?
Tracking ROMI is crucial for digital marketers since it allows them to estimate how effective their marketing efforts are: the achieved outcome considering the budget invested.
Monitoring ROMI allows marketers to be more in control of their strategy and plan their budgets more efficiently.
For instance, when comparing various ad campaigns based on their ROMI, digital marketers can quickly identify which tactics are worth investing in. Hence, the metric helps marketers consider the most crucial indicator – profit generated by specific marketing activity.
On top of that, this metric often helps the marketing department prove its accountability and effectiveness of its tactics to finance departments.
Please reach out to the Nexoya support to activate a ROMI performance metric for your account!