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Friday, January 22, 2010

Lesson 2 Vocab 45 - Return on Investment, ROI

by Matthew A Perosi
As an entrepreneur I expect you monitor all your advertising expenses. It is important to know how much profit is realized as a result of your advertising spending. This profit is your Return on Investment, or ROI.

I have heard many advertising companies claim that you need to continually flood your message out to the population. This is an especially common claim from magazines, newspapers, radio stations and TV stations. Of course a continual flood of your message translates into a deluge of spent money.

I've heard several advertising agencies state that a 2% response for direct mailings is a great return.

Lucky for you that you are now embarking into the era of new media advertising, where the cost of advertising is much lower and the ROI is much greater.

Once you learn the proper internet ma...
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AT: 01/22/2010 03:12:58 PM   0 COMMENTS
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