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ROMI

ROMI - (Return on Marketing Investment) is a measure of the return on investment from marketing costs. In this example, we are exploring ROMI for SEO sites.

ROMI formula

  • ROMI = (Gross profit from SEO - SEO costs) ÷ SEO costs × 100%
  • If more than 0 - the idea is profitable, less than 0 - unprofitable.
  • Gross profit: Cost of sales × Margin (in %) ÷ 100%

Romi formula

Example of ROMI calculation for a bed store:

  • Average cost of a bed is 5000 UAH.
  • 50% markup
  • Budget for SEO: 50000 UAH.
  • Sales per month: 100 pcs.
  • ROMI = ((5000 * 0.5 * 100) - 50000) × 100% ÷ 50000 = 400%