Return on investment (ROI) or Return on Advertising Investment (ROAI) is calculated by:
A)dividing net profit by the average amount invested (in a company or campaign)
B)dividing fixed costs by all revenues before taxes
C)dividing all revenues by fixed and variable costs
D)dividing all marketing costs by revenues

Question

Quizplus · Accepted Answer

ROI or ROAI is calculated by dividing the net profit by the average amount invested, which can refer to the total amount invested in a company or specifically in an advertising campaign. This formula helps in understanding the efficiency of an investment.

Return on Investment (ROI) or Return on Advertising Investment (ROAI)