What does ROI mean?

ROI is a financial index evaluation system. ROI (Return on Investment) evaluation system, represented by DuPont system, was initiated by DuPont in the United States at the beginning of last century and has been popular ever since.

The system breaks through the early practice of simply evaluating sales and profits, reveals the internal relations of some important financial indicators, and decomposes net profit and total assets layer by layer, thus systematically evaluating the financial situation of enterprises and assessing their performance accordingly. This simple financial index assessment system has been widely regarded as a traditional assessment system today.

Extended data:

The subject of marketing activity evaluation is to build a closed-loop analysis system of marketing activities by establishing an input-output evaluation method based on ROI index system, to reduce human intervention processes, to standardize marketing implementation links by monitoring means, to deepen marketing analysis and assist marketing planning based on evaluation, and to help establish better marketing activities and achieve higher activity benefits through continuous experience precipitation.

The bulk of advertising expenses, such as 3C, FMCG, cars, travel, luxury goods, etc. It has long been far away from the extravagant hope of making money by directly realizing traffic, and ROI is no longer the most important indicator.

Baidu Encyclopedia-Return on Investment