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One of the most important metrics for measuring performance is return on investment (also known as ROI). ROI represents the percentage of net profit
One of the most important metrics for measuring performance is return on investment (also known as ROI). ROI represents the percentage of net profit return on an investment. In other words, ROI measures how much you gained for a specific amount of money put in. To calculate ROI, you divide net profit by the amount invested and then multiply by 100% to get the percentage return on the investment, so ROI = (Net Profit / Investment) 100%. Consider the case where a marketing manager is comparing two different ad campaigns and has the following results: Ad A Ad B Profit $9,020 $3,995 Marketing Investment $4,400 $1,700 Return on Investment? What is the return on investment for each Ad campaign? Profit Marketing Investment Ad A Ad B $9,020 $3,995 $4,400 $1,700 Return on Investment 2.05 % 2.35 %
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