A long, long time ago in a galaxy far, far away a group of free thinkers far more advanced than we came up with a most earth shattering concept known as return on investment. The basic idea of this concept was that when you invest in something you want to achieve a positive return on that investment, it is most commonly expressed as the below formulas:
Standard ROI calculations

And less frequently like this:

Now some would argue that not all of the above are correct, however I’ll leave that for you to ponder a while.


3 thoughts on “ROI?

  1. Err, I don’t think you’re taking the POWER of social conversations seriously enough dude. Seriously.

    The digital moonscape is revolutionising the way consumers interact with brands and using dated methodology like “profit” or “cashflow” to measure business success and profitability show just how much of a dinosaur TRADITIONAL agencies are.

    I am going to start a NEW digital agency that operates entirely on a cost-per-PR article mentioned in Mumbrella, this will be REVOLUTIONARY.

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