What is ROI?

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.