ROMI (Return On Marketing Investment) is an ROI indicator calculated specifically for marketing costs.
Unlike the classic ROI, ROMI is calculated based on investments in marketing only for a certain period. Capital investments/expenses (CAPEX), for example, in production, in providing long-term inventories, etc., are not taken into account here. Only operating expenses, implying support for current activities (OPEX), are included in the formula.
ROMI believes:
short-term, to understand the return on investment in specific marketing activities;
In the long term, this concept is used to evaluate spain phone number data more complex investments, such as campaigns to increase awareness, loyalty, market reach, etc.
Otherwise, ROMI is the share of profit from marketing expenses (advertising), that is, the same ROI.
Standard formula for calculating ROI
Based on the above, to get ahead of ROI (return on investment), you need to use the following formula:
ROI = Прибыль от инвестиций / Сумма инвестиций * 100%
By analogy:
ROMI = Прибыль от маркетинга / Расходы на маркетинг * 100%
Please note that profit is not turnover or sales amount, it is the difference between investments and revenue (income).
That is, any of the indicated formulas can be rewritten as follows:
ROI = (Выручка - Сумма инвестиций)/Сумма инвестиций * 100%
Or like this:
ROMI = (Доходы от маркетинга – Расходы на маркетинг) / Расходы на маркетинг * 100%
Both ROI and ROMI can be calculated in net shares (without percentage allocation), or they can be saved as a ratio/proportion, for example, 2:1, which will show that for every ruble invested there will be 2 rubles of profit.
In many projects, management calculates the margin (the share of net profit from turnover) or directly the net profit.
But in both cases, a number of questions arise: what exactly should be subtracted to obtain the “pure” value?
The question is quite reasonable, since companies often work on funds taken on credit. Initial capital investments can reach large sums. As a result, there is no net profit left or it can be completely negative (due to mandatory loan payments).
So, normally, to obtain net profit, the following are deducted from income:
fixed costs (rent of premises, subscriptions to specialized tools, hosting rent, payment for mailing services , purchase of advertising, expenses for website builders , ERP and CRM systems, corporate mail, etc.);
wage fund (salaries of full-time specialists, payment for services of third-party/one-time contractors);
unplanned expenses (for example, those required to resolve emergency situations and problems, including email marketing audits );
capital expenditures (purchase of equipment, offices, production lines);
investments in goods (raw materials, inventory, etc.);
payment of loans and credit servicing.