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Finance

ROI

Definition

Return on Investment. A measure of profitability that compares net profit to the total cost of an investment. ROI is calculated as ((revenue minus cost) divided by cost) multiplied by 100. In film marketing, ROI helps you understand whether your ad spend and marketing efforts are generating more revenue than they cost.

Example

If you spend $5,000 on marketing and generate $8,000 in revenue, your ROI is ((8000 minus 5000) divided by 5000) times 100, or 60%.

Related Terms

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