Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 %

Step by Step Solution

3.57 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

ANSWER To calculate the return on investment ROI for each ad campaign we need to follo... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

More Books

Students also viewed these Finance questions

Question

What research studies are you interested in conducting?

Answered: 1 week ago