What is ROI?
Andrew GreenZenithOptimedia
BACKGROUND
The quest for ROI – Return on Investment – is close to the hearts of CEOs and Finance Directors, who want to treat marketing just like other capital investment projects.
They know, for example, that $100,000 invested in a new truck or factory will deliver very specific incremental revenues for a given cost. This, combined with an estimate of the life of the investment, will give them a clear handle on whether or not the investment is likely to pay back over both the short and long-term.
It is not quite so clear-cut...