ROMI

ROMI, return on marketing investment, expresses what marketing spend delivers: the attributed extra margin divided by the investment. It is the language in which marketing accounts for itself at the finance table, which is exactly why definitional precision is everything. The measurement traps are predictable: which revenue you attribute (attribution or incrementality), over which horizon (short-term ROI ignores brand building that pays out over years), and against which baseline. The paradox deserves its own warning: you maximise ROMI by doing only the safest things, and that shrinks the brand. Steer on total profit growth above a ROMI floor, not on the ratio itself.

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