Harvard Business Review

JUNE 22, 2015

“It’s one of the more popular ways that managers calculate marketing ROI,” says Avery, pointing out that other common ones include calculating the investment payback period, calculating an internal rate of return, and using net present value analysis. The variable costs to make each pair of flip flops are $14.00.

Variable Costs 15

Variable Costs Fixed Costs Advertising ROI 15

Harvard Business Review

MARCH 11, 2014

As he put it, “If you only want me to make decisions that have a clear ROI, then you should get out of the stock.” ” Cook’s gut reaction to defend actions that don’t have a clear ROI is admirable — and he has the legal right to make strategic decisions and investments, as does every CEO.

ROI 10

ROI Variable Costs Energy Benefits 10

Harvard Business Review

FEBRUARY 22, 2011

As each of these companies expands its fixed-cost infrastructure, profits grow geometrically because the additional variable cost of adding each new user is near zero. Adding a profile on Facebook has little to no impact on Facebook's operating costs. They're out to kill the cost-per-thousand or CPM-based ad sales model.

Advertising 16

Advertising Variable Costs Scaling Media 16