RETURN ON INVESTMENT DEFINITION


ROI stands for "Return on Investment" and is the ratio of money made or lost on an asset or business venture relative to the amount of money originally invested in the asset or venture. In search marketing, ROI is often used to measure the performance of SEO and PPC campaigns against the overall cost of such campaigns.

ROI is usually calculated using the following formula:

ROI = Profit/(Total Cost) or (Return - Cost)/Cost.

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