Aug
17
…otherwise, as I once told a CFO who ended up being the deciding factor in me getting a highly sought after job, what’s the point of it at all? While in marketing, the return on investment (ROI) concept is slightly different than measuring ROI on a stock or bond share, the basic principle is the same. If you sink an X amount of money into a campaign to say, raise brand awareness or sales, will you cover your investment? Will you flush your money down the toilet? Or will you make your money back PLUS some profit? Here’s an easy-does-it way to calculate marketing ROI for relatively simple marketing campaigns like e-mail newsletters or mail pieces…
In the current recession in which money is tighter than ever, the concept of ROI in marketing activities had gained a new found prominence. Although ironically, the type of advertising that marketers quantify as having the best ROI (Web 2.0), according to a recent survey, is also the hardest to measure. Go figure. Complicating the matter further, measuring for something like increased brand awareness is much less straightforward than for say, incremental sales.
Of course, it doesn’t take a brain surgeon to figure out that marketing is moving online… A 2009 Promo Interactive Marketing Survey showed brands see more potential in digital media than ever, with the largest number of respondents rating interactive ROI as ”more profitable” than other forms of traditional media. As our new media company prepares to open its virtual doors, the fundamental hope (and business case) is that we can help companies to increase their ROI and become exactly that: more profitable.
Tags
Business, Global trends, Marketing
