# Return On Marketing Investment

Date created: Oct 12, 2022  •   Last updated: Oct 12, 2022

## What is Return On Marketing Investment?

The Return On Marketing Investment (ROMI) metric measures how much revenue a marketing campaign is generating compared to the cost of running that campaign. Effective marketers are driven to connect their time, energy and advertising spend with results that contribute to company growth. This KPI answers the question, “are we recouping the time and money we spent developing and executing our marketing campaigns?”

### Return On Marketing Investment Formula

ƒ ( Sum(Attributable Revenue) - Sum(Campaign Investment) ) / Sum(Campaign Investment)

### How to calculate Return On Marketing Investment

If a company runs a \$10,000 campaign for a month, and the attributable sales growth is \$15,000, the ROMI would be; ROMI = (\$15,000 - \$10,000) / \$10,000 = 0.5 or 50%

### Start tracking your Return On Marketing Investment data

Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data.

### How to visualize Return On Marketing Investment?

Use a summary chart to visualize your Return On Marketing Investment data and compare it to a previous time period.

### Return On Marketing Investment visualization example

Return On Marketing Investment

63%

3.19

vs previous period

#### Summary Chart

Here's an example of how to visualize your current Return On Marketing Investment data in comparison to a previous time period or date range.

Return On Marketing Investment

#### Chart

Measuring Return On Marketing Investment

## More about Return On Marketing Investment

Despite the quintessential importance of ROMI, it can be difficult to measure and monitor. Measuring the investment side of the equation is fairly straightforward. You track hours spent planning and executing marketing campaigns and dollars spent securing advertising space online and offline. Measuring returns on marketing investments is more complicated for a few reasons.

First, most marketers today run a wide variety of campaigns simultaneously. This can make it difficult to stay on top of spending and the performance of each individual campaign.

Second, in our fast paced digital world, marketing campaigns can take on a life of their own, making it difficult to monitor and measure the effects of marketing messages that are spread by an external audience.

Lastly, and in relation to the first two obstacles, connecting the dots between marketing campaigns and the achievement of marketing goals can be challenging. Multiple marketing messages often reach a target audience through a variety of marketing channels. It can be hard to tell which messages resonated and incited action.

Faced with these challenges, the most effective way to measure ROMI is to identify data correlations and trends over time by combining and comparing data sets from a variety of sources, for example, Google Analytics, Google Adwords, your Marketing Automation Platform and CRM. If you notice that increasing your Adwords spend is consistently coinciding with a bump in website traffic, and that the bump in website traffic is leading to more leads and more sales, you can break the conversion loop down and come up with straightforward return on investment KPIs, for example:

New Website Users/Trial Start: 25