return-on-investment

Vocabulary Word

Definition

'Return-on-investment' or 'ROI' is often used in business. It means finding out how well a business investment has worked out. It's like saying 'Did I get my money's worth after making this investment?'

Examples in Different Contexts

In digital marketing, 'return on investment' helps measure the effectiveness of online advertising campaigns in generating profits. A digital marketing manager might discuss, 'By optimizing our ad spend, we’ve seen a substantial increase in ROI, leading to higher sales.'

Practice Scenarios

Marketing

Scenario:

For the upcoming product launch, we have several promotional strategies in mind. We need to gauge which one might be the most successful.

Response:

Absolutely, we need to forecast the return on investment for each strategy to inform our decision.

Business

Scenario:

We are considering replacing our old machinery with newer models. But we need to ascertain if the potential benefits outweigh the costs.

Response:

Agreed, before making a decision, we should evaluate the return on investment first.