Marginal Return On Investment
Marginal Return on Investment (mROI) measures the incremental revenue or profit per additional dollar spent on marketing activities.
Marginal Return on Investment (mROI) measures the additional revenue or profit generated per dollar spent on a specific marketing activity, such as coupons or in-store displays. It’s a refined versioun of ROI (Return on Investment), focusing on in.cremental gains rather than overall returns.
mROI is particularly useful for detecting diminishing returns—e.g., when additional promo spend yields minimal volume uplift.
Benefits
- Budget Optimization: Identify high-mROI activities to reallocate resources, potentially increasing overall profitability.
- Strategic Decision-Making: Compare mROI across channels to prioritize upper-funnel vs. lower-funnel tactics, avoiding pitfalls like those in Last Click Attribution.