What does ROMI mean?

by | Apr 28, 2020

ROMI Stands for Return On Marketing Investment

Similar to ROI (Return on Investment), Return On Marketing Investment (ROMI) takes a look at the returns a company can attribute to marketing and advertising functions.

This equation takes a look at net profit divided by total marketing expenses. A positive number here shows marketing is generating business. A negative number doesn’t necessarily show business is not generated from marketing but that it at least cannot be attributed to marketing.

This is commonly used as a benchmark in direct response advertising and is similar to ROAS. ROMI (Return On Marketing Investment) may also be referred to as ROMS (Return On Marketing Spend). 

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