Which metric best measures the return of a marketing campaign relative to marketing costs?

• A. ROI
• B. ROMI
• C. CPC
• D. CPM

Answer: (B)

This question is about measuring how much profit a marketing campaign generates relative to what it costs. The best fit for that is ROMI, or Return on Marketing Investment. ROMI looks at the incremental profit directly tied to the marketing activities and compares it to the marketing spend, giving you a clear sense of profit earned per dollar (or per unit) invested in marketing. In practice you estimate the portion of sales and profits that marketing can be credited with, subtract the campaign’s costs, and then divide by those costs to get a ratio or percentage. This focused view is why ROMI is the most appropriate metric for evaluating the effectiveness of marketing campaigns.

Other metrics don’t capture this relationship. Cost-per-click and cost-per-thousand-impressions tell you how much you’re paying for specific actions or exposures, not whether those actions are turning into profit. ROI is broader and can apply to an entire project or business, not just the marketing program, so it’s less precise for assessing marketing-specific performance.