Italy: ROI of advertising and market research companies 2015-2017, by company

Among the major advertising and market research companies in Italy, Radiomediaset S.p.A. was the one which generated the highest return on investment over the period from 2015 to 2017. According to the data provided by Prometeia, Radiomediaset generated an average ROI of 45.2 percent during the three years. Simple Agency S.r.l. and Nielsen Services Italy S.r.l. followed with a ROI of 37.2 and 31.2 percent, respectively. Amnet Italia S.r.l. and GroupM Plus S.r.l. were instead the firms with the highest return on equity (ROE).  

What do the ROI and the ROE tell us about a company?

Both the return on investment (ROI) and the return on equity (ROE) are indicators that provides information about the financial status of a company. In detail, the ROE is calculated by dividing the net income by the total equity and it gives an idea of how efficiently a company’s assets are deployed to create profit. The ROI offers insights about the profitability of the investments made. They are both calculated as percentages.

Advertising and market research industry: ROI & ROE

Regarding the advertising and market research industry, the analysis of the ROI and the ROE of a significant sample of firms, show that this industry performed well in 2017, while it was expected to experience a slight slowdown in 2018. More specifically, in 2017, the companies of the sample generated a return on investment of 8.2 percent, which was expected to decrease to 7.6 percent in 2018. The ROE was expected to decline from 17.4 percent in 2017 to 15.8 percent in 2017. Nonetheless, the forecasts for the following years, show a steady increase for the ROI, and a static trend for the ROE.