What does ROI mean?

ROI stands for Return on Investment. It expresses the profit or loss that a certain investment has generated relative to the costs incurred. It is usually calculated as the difference between return and costs, divided by the costs, and expressed as a percentage. For example, if a company invests CZK 10,000 and gains a net benefit of CZK 2,000 from it, the ROI is 20%. In marketing and e-commerce, it is used to evaluate the efficiency of campaigns, technologies or other activities. For a correct calculation, it is important to include all relevant costs and the actual financial benefit, not just revenue.