Marketing ROI, what does it really mean?
In times of economic slowdown, one thing seems to come out on top – Return on Investment. For me marketing is like a new business venture, and all a brand should really be interested in is Risk & Return.
In the marketing boardroom it is often difficult to find the balance between cost effectiveness and creativity. I find that brand managers & agency professionals use the term ROI like it has been calculated. When I first started working, I was expecting to get a financial breakdown – not a budget, not reconciliation, an actual return on investment in the form of a cost benefit analysis, where the benefits are the objectives achieved and cost of each medium/campaign implemented carefully evaluated, including risk factors and external environmental influences. It reminded me of an equation in Finance – developing a diversified asset portfolio.
I read an interesting article this morning – sharper senses 5p’s of digital marketing – I hate the P’s in marketing, cant they use a different letter? – regardless this i found worth posting, as it is a brilliant example of how Google treats marketing as a business reducing risk and increasing ways to calculate return on investment in a more tangible manner.
I am not entirely done with this post, but as the word goes, if I do not post it now it will once again simply get lost in the folder of “to post articles” filling up my hard drive every day….