ROI stands for return on investment and the term is
commonly used in the business world. In case of online marketing, the term is
used to refer to the return that the advertisers get by investing in different
advertisement campaigns. The return on investment is calculated to understand
whether the investment was worth it or not. When a company gains profit through
investment then it is considered to be good but if the return shows loss then
it is the opposite. In case of online advertisement, the return refers to the
traffic that a website gets by inesting in different advertisement campaigns.
There are different ways to measure this investment.
In case a website has used an advertisement campaign
to get more traffic to site and has invested in relevant marketing tools for
then he can calculate the returns by analyzing the traffic volume. If the
volume has increased because of the advertisement then it is considered to be
good. On the other hand, some of the advertisers prefer to use the
advertisement campaign to initiate action in the form of registration or sale. If
the advertisement campaign employed by them helps them to get more registration
and has helped them to make better online sales then return on investment is
considered to be good.