Rate on Investment with Social Media [Video]
Friday, March 26, 2010
With ROI, decision makers evaluate investments by comparing the magnitude and timing of expected gains to the magnitude and timing of investment costs. A good ROI means that investment returns compare favorably to investment costs.
ROI compares returns and costs by constructing a ratio, or percentage. In most ROI methods, an ROI ratio greater than 0.00 (or an ROI percentage greater than 0%) means the investment returns more than its cost. Other things being equal, the investment—or action, or business case scenario—with the higher ROI is considered the better choice, or the better business decision.
