ROI is Return on investment, commonly abbreviated ROI, refers to the amount of profit returned on an investment of finances, resources, or assets.
ROI is a performance metric commonly expressed as a percentage. An investment of one hundred dollars that returns two hundred dollars in profit would result in a 100% ROI, for example. Calculating an ROI, however, can become more difficult in situations where measurement is difficult or impossible.
The ROI of a billboard, or certain types of social media campaigns, do not always have a clear impact. Additionally, different departments may employ different variables to calculate the ROI, which would produce a different result. Despite these complications, ROI is vital for organizations attempting to calculate the gains and losses of their investments.
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