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What is Return on Investment

Advanced Digital Marketing Strategies in a Data-Driven Era
Profitability of the ad campaign that results from the difference between the revenue of the campaign and its cost.
Published in Chapter:
Understanding Google Ads Metrics for SME
Belem Barbosa (University of Porto, Portugal), Zaila Oliveira (Unichristus, Brazil & Unifametro, Brazil), Sandrina F. Teixeira (CEOS, ISCAP, Polytechnic of Porto, Portugal), and Vasco Paço Gomes (University of Aveiro, Portugal)
Copyright: © 2021 |Pages: 22
DOI: 10.4018/978-1-7998-8003-5.ch007
Abstract
Despite its popularity, search engine advertising is a particularly complex and demanding technique. One of the main challenges for Google Ads managers is to adequately monitor performance. Indeed, the literature identifies a plethora of metrics to measure the success of a search engine ads campaign. One research question arises: What are the metrics adopted by small and medium-sized companies to measure the performance of a Google Ads campaign? This chapter includes a mixed-method study with digital marketing professionals experienced in managing Google Ads campaigns for Portuguese SMEs. Interviews helped highlight the main difficulties faced by SEM's Google Ads' managers and to identify the performance measures they mostly control. Then, a survey enabled to analyse the association between performance measures and campaigns' perceived success. The insights produced by this chapter are particularly interesting for researchers, teachers, business managers, and digital marketing professionals, as it presents important clues on measuring the effectiveness of Google Ads campaigns.
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Evaluation of Aerosolized Bronchodilator Protocol in a Large Urban Level II Hospital
A statement of program merit or worth that either qualifies or disqualifies continued program support.
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Assessment in Academic Libraries
A financial ratio that expresses the relationship between an investment and the benefits that are derived from it.
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Considerations When Choosing Artificial Intelligence to Meet Business Needs in Higher Education Institutions
A documented financial or efficiency gain that will be obtained by implementing an artificial intelligence technology.
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An Entrepreneur Sees the Reward: The Importance of Intellectual Capital and Corporate Social Responsibility in a Company
The financial ratio that measures the generated gain or loss of an investor relative to investment cost.
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The Use of Companion Applications to Support Instructor-Led Training
A calculation that a business uses to determine the benefit of making a monetary investment in something versus net profit.
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Cost-Effective Solutions Using Smart Contracts in Blockchain for Commercial Residential Midrise Building Developers and Consumers
Return on investment or return on costs is a ratio between net income and investment. A high ROI means the investment's gains compare favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments.
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Assessing the Total Cost of Ownership of Virtual Communities: The Case of the Berlin Stock Exchange
Ratio relating the total profit of an investment to the capital stock provided for an investment. The ROI is often calculated as a static measure, therefore neglecting dynamic aspects inherent in long-term frame decision problems. Calculating the ROI on the basis of VOFI, the ROI represents a dynamic measure and considers various conditions of loaning and funding as well as taxation. For evaluating the profitability of an investment, the ROI has to be compared to the average capital cost within the planning horizon
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User Experience Measurement: Recent Practice of E-Businesses
A business condition when investment cost compares lower to its gains or profits.
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Digital Marketing and the Sustainable Performance of Small and Medium Enterprises
A prominent financial statistic for assessing the likelihood of profiting from an investment.
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Return on Investment: Contrary to Popular Belief, MOOCs are not Free
A performance measurement used to evaluate the effectiveness of an investment.
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Investing in Multimedia Agents for E-Learning Solutions
Refers to the percentage of profit or revenue generated from a specific activity.
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Evaluating the Impact and ROI of Medical Education Programs
A financial metric that compares the monetary benefits of an investment against the program costs of the investment. It is considered the ultimate economic measure of program success used by executives and senior leaders to determine the value of a program, project, or initiative.
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