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TERM
mROI (Marginal Return on Investment)
Marginal return on the next dollar spent.
Definition
mROI estimates incremental profit divided by incremental spend for small changes in budget.
How to Calculate
Compute delta profit over delta spend near the current level.
Why it Matters
Guides where to invest the next dollar.
Key Advantages
Optimizes allocation across channels.
Example
Retail media mROI of 1.5 at current spend.
Use it to
Shift funds to the highest mROI channel.
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