> For the complete documentation index, see [llms.txt](https://docs.roivenue.com/roivenue-resources/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.roivenue.com/roivenue-resources/glossary/marketing-and-financial-glossary/return-on-marketing-investment-romi.md).

# Return on Marketing Investment (ROMI)

**Return on marketing investment (ROMI)** is used for measuring the effectiveness of marketing investment and helps with allocating future marketing investments. **ROMI and** [**mROMI**](/roivenue-resources/glossary/marketing-and-financial-glossary/margin-return-on-marketing-investment-mromi.md) **are the key essential indicators that show you the global performance of your business at the highest level.** ROMI is also called "Return ROI" because it's calculated with return(net revenue) in the numerator.

The difference between [ROI](/roivenue-resources/glossary/marketing-and-financial-glossary/return-on-investment-roi.md) and ROMI is that [ROI](/roivenue-resources/glossary/marketing-and-financial-glossary/return-on-investment-roi.md) is used for the global investment view, whereas, ROMI reflects only the direct impact of marketing investment on a business’s revenue. The reason for distinguishing [ROI](/roivenue-resources/glossary/marketing-and-financial-glossary/return-on-investment-roi.md) and ROMI is that sometimes it’s difficult to specify all of related costs and it’s sufficient to involve only marketing investment.&#x20;

The scope of possible values of ROMI is again from -1 to infinity. From -1 to 0 means that the marketing investment wasn’t directly profitable and values higher than 0 means that it was.

| **ROMI = -1**                | You directly lost all of your investment, no revenue has been generated.                                    |
| ---------------------------- | ----------------------------------------------------------------------------------------------------------- |
| **ROMI is between -1 and 0** | Your return was lower than your Marketing Investment and basically you are still losing money.              |
| **ROMI = 0**                 | Your direct revenue equals your Marketing Investment.                                                       |
| **ROMI is higher then 0**    | Your Marketing Investment was efficient from a Return point of view. Higher number means higher efficiency. |

### Parameters

**`Calculation:`**` ``ROMI = ( netRevenue - marketingInvestment - otherMarketingExpense ) / ( marketingInvestment + otherMarketingExpense )`**`Example:`**` ``ROMI = ( 1 000 000 - 100 000 - 10 000 ) / ( 100 000 + 10 000) ≐ 8,09`

**`Unit:`**` ``Number`
