Question: True or false? When measuring your social media ROI, you calculate the effectiveness of an action by dividing the net income by the cost of this action and multiplying it by 100.
- True
- False
Explanation
Social media ROI measures return by comparing the net income generated from an action against the cost required to execute it. In Amazon Ads terminology, marketing ROI helps evaluate whether marketing spend produced measurable business value. Multiplying by 100 expresses the result as a percentage, making performance easier to compare across campaigns or actions. This calculation is useful only when both return and total cost are tracked accurately.
Why the other options are incorrect
False is incorrect because net income divided by cost, multiplied by 100, is a valid ROI percentage calculation.
Source for verification
https://advertising.amazon.com/library/guides/marketing-roi
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