ROI on Targeted Advertising and Marketing

Return on Investment, or in short ROI means the percentage rate of profit or loss on investment of a sum of amount in promotion or advertisement of a product or service. Return on Investment is also known as Rate of Profit, Rate of Return, or simply Return.

Return on Investment or ROI can be calculated in simple percentage formula or by the arithmetic return formula. The simple ROI calculation formula does not take the factor time into consideration in calculation of ROI.

Maximum ROI can be achieved through targeted advertising and marketing of the product and service to its consumers. Targeted advertising and marketing can be through television or radio advertisement, print advertisement, contextual or pay per action based advertisements. Some lists company also studies consumer purchase behavior to achieve maximum Return on Investment.