3 ms·
ROI is (net benefit)/(cost), where net benefit is (gross benefit - cost). Net benefit can be negative, making ROI negative if cost exceeds benefit. GP was using
by ddulaney 6y ago
ROI is (net benefit)/(cost), where net benefit is (gross benefit - cost). Net benefit can be negative, making ROI negative if cost exceeds benefit. GP was using benefit as a shorthand for net benefit, which can certainly be negative.
- loeg 6y agoEven gross benefit could conceivably be negative, if the ads are bad enough! (I.e., a terrible ad might prevent a sale.)