Question

you recently started a small affiliate marketing service. last month, you spent $1,000 on a pay - per - click (ppc) online advertising campaign that resulted in $1,200 in sales. what was last months return on investment (roi) for your affiliate marketing service? 80% 20%.2% 120%

Explanation:

Step1: Recall ROI formula

ROI is calculated as \(\text{ROI} = \frac{\text{Net Profit}}{\text{Cost of Investment}} \times 100\%\). First, find the net profit. Net profit = Sales - Cost of Investment.
Given, Cost of Investment (advertising spend) = \$1000, Sales = \$1200. So, Net Profit = \(1200 - 1000 = 200\).

Step2: Calculate ROI

Now, substitute into the ROI formula: \(\text{ROI} = \frac{200}{1000} \times 100\% = 0.2 \times 100\% = 20\%\).

Answer:

20% (corresponding to the option with "20%")