Not sure about the difference between ROI and LTV? Looking for ways to boost your CTR and lower your CPC while maintaining your KPIs? Demystify the jargon & spoon up a bowlful of online marketing alphabet soup with this handy glossary. New terms added regularly.
Online Marketing Terms, Explained
There is currently 1 name in this directory beginning with the letter R.
ROI - Return on Investment
This is a term used to describe the profitability (or cost) of a particular online marketing campaign. The return on the investment is calculated by dividing the profit generated by the campaign by the cost of the campaign. The answer is expressed as a percentage. More in-depth ROI calculations use the lifetime value (LTV) of the newly acquired customers, as well as the full implementation costs of the campaign.
Example: An advertising campaign costs $1,000 to implement and generates $5000 in profit. The ROI is 500%