The indicator helps to identify working advertising

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Now we can calculate ROMI: (191,250 – 150,000) ÷ 150,000 × 100 = 27.5%

The ROMI indicator was 27.5%. Accordingly, investments in SEO over the period paid off by 27.5%.

ROAS
(Return on Advertising Spend— is the return on advertising expenses)

ROMI has a narrower focus than ROI and is used to determine the effectiveness of a marketing strategy.
ROAS formula:
ROAS = Ad Revenue ÷ Ad Spend × 100

When calculating ROAS, only expenses for a specific brazil email list advertising tool or channel are considered. tools and eliminate unprofitable ones.

EXAMPLE : We spent 50,000 rubles on contextual advertising of a tutor's services. As a result, we managed to attract five clients, each of whom paid 15,000 rubles for a course of lessons.

We calculate ROAS: (5 × 15,000) ÷ 50,000 × 100 = 150%

ROAS was 150% and the costs of contextual advertising paid off by a similar amount.

WHEN TO CALCULATE ROI (ROMI / ROAS)
Calculating ROI is useful when making management decisions. The indicator can be used to assess the current profitability of a project, which will help avoid costly mistakes when investing in unprofitable projects. ROI helps in choosing the direction of a company's development when it is necessary to identify profitable paths.