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.
Last Click Attribution
Last-click attribution assigns 100% credit for a conversion to the final touchpoint before purchase, such as a paid search click or direct visit.
Mean Absolute Error
Mean Absolute Error (MAE) measures average absolute differences between predicted and actual values, offering a robust scale-independent error metric less affected by outliers than squared errors.