How is ROMI used?

The Return on Marketing Investment, or ROMI, can measure multiple business values from marketing activities, informing both tactical and strategic business decisions.

ROMI, sometimes expressed as Return on Ad Spends (ROAS), is a measurement of business value generated by marketing, usually expressed as a simple formula.

ROMI formula

Because the formula is flexible, the calculations can have business impacts beyond simple revenue generated from an ad campaign.  Depending on whether a marketer is determining generated revenue, profit, focusing on all of marketing, or specific initiatives, ROMI implications can be applied across critical business needs.  Below are just a few examples of ROMI application.

  • Annual marketing department budgeting
  • Benchmarking against competitions or industry standards
  • Historical projections
  • Tactical decisions (which tactics to continue for maximum impact)
  • Strategic decisions (combining ROMI data with other data sources for customer insights)


Learn more about ROMI here.