ROI is "Return on Investment". This is the amount of money you make in comparison to what you have spent. In other words, the amount of money you make per advertising dollar spent.
For example, if you spend $100 on Yahoo! Search Marketing to get customers, and you sell $125 worth of widgets, then you had a 125% ROI. In other words, you investment of 100% gained you an additional 25% causing your total return to bring you back the original investment of $100 plus $25 (25% in this example).
To figure out your ROI, you will divide your total return by the total investment. In this example that would be $125/$100 = ROI.
If you have any questions or comments about ROI, leave them in the comments section below!
