Return on Marketing Investment (ROMI) measures the revenue or profit generated for every dollar spent on marketing. It helps businesses assess the effectiveness and financial impact of their marketing campaigns.
Quite unlike ROI, which considers the return on broader business investments, ROMI focuses specifically on marketing efficiency.
ROMI compares the incremental revenue or profit generated from a marketing effort to the cost of that effort. It can be calculated using revenue-based or profit-based approaches depending on how granular you want to be.
Focus on a specific campaign, channel, or period.
Calculate the revenue attributed to that marketing activity (exclude baseline revenue).
Include ad spend, tools, agency fees, and team costs specific to the campaign.
Subtract COGS from revenue to get gross profit, for a profit-based ROMI.
Use either revenue-based or profit-based calculation.
1. Revenue-based ROMI:
ROMI = (Incremental Revenue−Marketing Cost) ÷ Marketing Cost
2. Profit-based ROMI:
ROMI = (Gross Profit−Marketing Cost) ÷ Marketing Cost
The ideal benchmark for B2B is:
5:1 (good)
10:1 (excellent)
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ROMI quantifies the business impact of marketing spend, helping teams justify budgets, optimize campaigns, and prioritize high-performing channels. It shifts marketing from a cost center to a revenue driver by aligning efforts with measurable outcomes.
A high ROMI is generally positive, but it must be interpreted in context. For example, a campaign with limited scale may show high ROMI but drive minimal revenue overall. Sustainable growth requires balancing both ROMI and volume of returns.
To improve ROMI, focus on increasing conversion rates, refining audience targeting, optimizing creative content, and reducing marketing costs. Using A/B testing, performance attribution, and channel mix analysis can also help boost returns from existing budgets.