Return on Marketing Investment (ROMI)
01 Definition
Return on Marketing Investment (ROMI) meaning: The incremental profit from marketing divided by the marketing spend that drove it.
ROMI measures the extra profit generated by marketing relative to its cost, ideally counting only sales marketing caused. It refines general ROI for marketing decisions. Isolating incremental impact is hard, so estimates rely on assumptions about what would have happened anyway.
Why it matters
How Return on Marketing Investment (ROMI) fits the work
It focuses attention on the added value marketing creates, helping justify budgets and compare campaigns on profit rather than raw revenue.
In context
Marketing spent 40,000 dollars and drove 60,000 dollars in incremental profit, for a ROMI of 150 percent.
Practical note
The honest version needs a baseline of sales you would have made without marketing. Skipping that overstates ROMI by crediting organic demand.