Is a Roi Bad

But is “return on investment” an accurate way to measure marketing effectiveness? Sadly – and perhaps even shockingly to some – the answer is no. It’s not that the notion of ROI is evil or anything. After all, linking marketing to financial performance is absolutely critical.

Can you measure ROI?

ROI is calculated by subtracting the initial value of the investment from the final value of the investment (which equals the net return), then dividing this new number (the net return) by the cost of the investment, then finally, multiplying it by 100.

What's a good ROI?

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the S&P 500, accounting for inflation. Because this is an average, some years your return may be higher; some years they may be lower.