ROMI

ROMI - Return on Marketing Investment, an indicator of return on marketing. It is calculated as the profit generated by marketing minus marketing costs divided by those costs and multiplied by one hundred percent.

Key difference from ROAS: ROAS refers to revenue, ROMI refers to profit. A campaign with ROAS of 400% may have ROMI close to zero if product margins are low. Therefore, ROAS shows whether advertising pays off in terms of turnover, and ROMI shows whether the company makes money from it.

The relationship with DRR is reverse: DRR shows what share of revenue was consumed by advertising, ROMI shows how much was returned per invested ruble. If the DRR is twenty percent, then for every ruble of advertising there are five rubles of revenue; to get ROMI from this, you need to subtract the cost and other expenses.

The main difficulty of ROMI in practice is to correctly attribute profit to marketing. With a long transaction cycle and multiple touches, this comes down to the attribution model, and the number begins to depend on how you count, and not on how the ad performed.