These types of calculations are used in online marketing, for example, in order to figure out the success of advertising costs in relation to the profit they generate. In this context, it is referred to specifically as the return on marketing investment (ROMI).
Google recommends that website operators measure the success of advertising expenditures for AdWords advertisements by using the ROI it generates. The following example shows how to do this.
Imagine that you operate an online store and that you advertise your products in the search engine. For the purchase of articles, you incur a cost of 2,500 pounds which you use to generate 4,000 pounds in sales. The AdWords advertisements incur an expense of 500 pounds.
You can calculate the success of your marketing investments by dividing the profit share by these advertising costs and multiplying the result by 100. To do this, you can use the ROAS formula (return on advertising spend). It generates a ROI that refers to a specific profit share and the advertising costs that were spent to obtain it.