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%
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%
