Will the Real ROI Please Stand Up?

Image from Web Promotion Articles: Will the Real ROI Please Stand Up? For a long time now, I've noticed a disturbing trend in the use of the term "Return on Investment" (ROI). Since the ROI equation is really just about division, I'm going to take a minute or two to go over the details of what the real ROI is about and how you can use it in the optimization of your SEM and other interactive advertising activities. Be forewarned here, kids, we're going to be talking about mathematical equations here today. But don't panic, it's nothing close to John Nash level equations, just simple division and multiplication.

In my almost ten years of working in the interactive advertising field, I've noticed a disturbing trend in the use of the term "Return on Investment" or ROI. The problem isn't a flat out inaccurate use of the term, because its true definition has softened over the years, but more along the lines of a complete disregard of the equation's potential due to sheer laziness. For instance, in the past week alone, I've read two different electronic books that promised an "increase in your ROI" by using their methods. However, once I got past the promising title, I found out that the author doesn't even bring up the equation for determining this important measure of Profitability.

I guess I can't get too upset about this abuse; math has always been a point of contention for a wide range of people, including myself. In fact, I even switched majors during my undergrad days from computer science to advertising because I couldn't get past Discreet Mathematics. But since the ROI equation is really just about division, I'm going to take a minute or two to go over the details of what the real ROI is about and how you can use it in the optimization of your SEM and other interactive advertising activities.

Set up Your Online Portfolio
Planning to set up your very own online portfolio? Very well, then you have to know first what
Add Your Voice To Your WebSite
With millions of web sites out there, how can you make yours stand out? Many experts suggest putting a picture of yourself on your home page to add warmth and create a feeling of trust. They suggest visitors feel more comfortable knowing theres a real person behind the otherwise anonymous web site....
Basic Rules on Page Layout and Color
For one to be able to stand out from the rest, one needs to go out of the box, break the rules, and some other clichés that apply to breaking out from the traditional. But before breaking any rule, you have to understand first the basic and foundation of the rule itself...
10 Things You Must Understand About Your Prospects
1. Your prospects need you. Do you imagine that by promoting yourself, you are intruding on or interrupting your prospect? Are you thinking, They wont want what I have, or Theyve probably already got someone. Well, as Sto...
Search Engine Optimization for Real Estate Business
A lot of investors or business owners want to make sure that their businesses are going to be successful. So they usually find a way to make their businesses jump to top.
Easy Web Design Tips
Pick an easy layout; easy to design and easy to maintain. I have wasted many hours trying to design a site that was easily three steps above my skill level. This was a complete waste of time and I promised myself that I won
Solving Common Problems with Web Hosting Companies
For those of you with Web sites, you probably know what a
People don't read
The #1 most important feature to appreciate about browsing behaviour is scanning. Web sites designed to be looked at are likely to fail. Web sites designed to be scanned are more likely to succeed...
Choosing the appropriate logo for your business
If you have your own Business Company or establishment especially if you are just starting, you should understand that in order for your company to branits way, you should appear visibly to your clients...
How people use web pages
Web designers naturally have a distorted view of web pages. The way we look at pages as we design them is very different from how theyre used in the real world. To create designs that work in the real world, we must appreciate the way theyll really be used...