Italy: ROI of advertising and marketing companies 2017-2021

 An analysis conducted by Prometeia about the advertising and market research industry in Italy, reveals that in 2017, the average return on investment of companies operating in this sector was of 8.2 percent. However, the forecasted figures for the following years also show that the ROI was expected to decrease to 7.6 percent in 2018, before gradually increasing until 2021. Among the leading firms of the sector, Radiomediaset S.p.A. was the one generating the highest average return on investment – 45.2 percent - between 2015 and 2017.  

Return on investment (ROI) and return on equity (ROE)

 The return on investment (ROI) is one of the indicators used to measure the financial performance of a company. More specifically, it is a ratio between the net income and the cost of investment, and as such it provides information about the effectiveness of an investment in terms of tangible results on the income. Another key financial indicator is the return on equity, which, instead, is a good measure of how the equity of a company is used to generate profit. Amnet Italia S.r.l. and GroupM Plus S.r.l. were the firms in the advertising and market research sector generating the greatest return on equity in Italy between 2015 and 2017. The average ROE of the two companies was equal to 96.5 and 85.8 percent , respectively.    

ROE of the advertising and market research industry: forecasts

Pertaining to the entire advertising and market research sector, 2017 was a good year in terms of profits generated from equity by the companies, given that the ROE of a significant sample of them reached 17.4 percent . The forecasts for the following years show a decline of the ROE in 2018, a new increase in 2019 and thereafter steady values until 2021.