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 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 and ROMI is that ROI 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 and ROMI is that sometimes it’s difficult to specify all of related costs and it’s sufficient to involve only marketing investment.
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 = ( netRevenue - marketingInvestment - otherMarketingExpense ) / ( marketingInvestment + otherMarketingExpense )
ROMI = ( 1 000 000 - 100 000 - 10 000 ) / ( 100 000 + 10 000) ≐ 8,09