Browse Definitions :
Definition

return on marketing investment (ROMI)

Contributor(s): Guy R. Powell

Return on marketing investment (ROMI) is a metric used to measure the overall effectiveness of a marketing campaign to help marketers make better decisions about allocating future investments. ROMI is usually used in online marketing, though integrated campaigns that span print, broadcast and social media may also rely on it for determining overall success. ROMI is a subset of ROI (return on investment). 

In the simplest sense, ROMI is measured by comparing revenue gains against marketing investment. This calculation, however, reflects only the direct impact of marketing investment on a business's revenue. As a result, many digital marketers include dwell time or brand awareness in their ROMI metrics in an effort to quantify less tangible benefits and target future campaigns more effectively. According to ROMI expert Gary R. Powell, with the right data and analytics, marketers can deliver between 8% - 15% increased revenue, profit and market share to the client without any increase in marketing investment.

Return on marketing opportunity (ROMO) is a similar metric used by digital marketers that focused on the wider influence of a campaign. Both terms are part of a wider attempt in the industry to measure impact-based advertising.

Learn more about IT:
>
 Marketing Evolution.com features a downloadable case study about evaluating the return on marketing objectives (ROMO). (PDF)
> Guy R. Powell explains advertising, branding, ROMI and PR ROI in his book, "Return on Marketing Investment."
 

This was last updated in October 2008

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

File Extensions and File Formats

SearchCompliance

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

  • PCI DSS (Payment Card Industry Data Security Standard)

    The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to ...

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

SearchSecurity

SearchHealthIT

SearchDisasterRecovery

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

  • cloud disaster recovery (cloud DR)

    Cloud disaster recovery (cloud DR) is a combination of strategies and services intended to back up data, applications and other ...

SearchStorage

Close