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Return On Investment (ROI)No company can hope to remain viable or even grow, without closely monitoring theeffectiveness of its advertising. In the current economy no corner of a company’s expenses isgoing without scrutiny, especially marketing and promotion costs.The negative results of making expenditures which do not contribute to profits are obvious. Acompany’s inherent marketing goal is to direct its efforts toward activities which produce adesired outcome, usually sales but could also include interim steps toward a sale, attendance atevents, subscriptions, sample downloads and other such activities by its prospects.A popular method of measuring whether a firm is getting its money’s worth from promotions isby the calculation of Return on Investment (ROI). Return on Investment is a metric thatmeasures profit associated with each investment. Although methods and approaches may varythe calculation below will yield a basic return on investment result: