Mike has a small pizza place in Vaughan.He spent $500 last year on search engine marketing so that people in the neighbourhood see his ad when the search for pizza or food.He believes his SEM generates extra $1,500 sales revenue last year.What would be the ROI in this example?

Question

Quizplus · Accepted Answer

The ROI (Return on Investment) is calculated as (Net Profit / Cost of Investment) x 100. In this case, Net Profit = $1,500 (extra sales revenue) - $500 (cost) = $1,000. So, ROI = ($1,000 / $500) x 100 = 200%.

Mike Has a Small Pizza Place in Vaughan