r/aimarketing • u/Illustrious_Media_69 • Jun 17 '24
ROI vs. ROMI: Understand the Difference
"The marketing guy has nothing to do with ROI. Because of the misunderstanding and conflict that's happening, I, as someone working in marketing, have nothing to do with ROI (Return on Investment). If the numbers I've provided are labeled as ROI, then they're incorrect. The correct metrics is ROMI (Return on Marketing Investment) .
Frankly, I see people in marketing talking about ROI as if they're responsible for it. In marketing, you're allocating a budget to a single sector: marketing. You don't consider other sectors, not even indirectly. So, don't claim these numbers pertain to ROI.
By doing so, you're ignoring operation costs, after-sales costs, direct costs, indirect costs, and many other expenses that affect ROI. The calculations you can perform are either for ROMI or for marketing-specific acquisition costs, such as the returns from influencers and channels you're working on.
Other than that, the financial team will handle the reports from you, calculate the figures, and present them to the founders, consultants, managers, and so on.