Investment Return CalculatorWhat are the opportunities and challenges using a Marketing Investment Return Calculator?
What are the opportunities and challenges using a Marketing Investment Return Calculator?
Investment Return Calculator
Using a Marketing Investment Calculator can help identify great opportunities for brands and marketers, but there are certain challenges as well. Knowing the ROI and effectiveness of marketing activities is critical to an above average return on marketing investment. It allows the marketing team to finally speak the language of the C-Suite and the top executives helping them to keep and increase their budgets as well as their compensation.
Opportunities using a Marketing Investment Calculator
Depending on the size and maturity of the marketing function within an organization, a marketing investment calculator can be used for measuring the effectiveness of simple direct response media to complex, highly integrated marketing communications campaigns. Measuring the effectiveness of simple direct response campaigns, such as a digital PPC campaign, is quite simple and highly recommended. The simplest success measurement measures the number of clicks to the amount of investment made in the PPC campaign. Depending on the sales cycle and purchase process, the measurement can stop at the click or it can include quality metrics, such as time on site or pages viewed. Or it can go to the actual conversion value. The quality dimensions of the response are critical especially for highly considered purchases such as cars, TVs or B2B purchases.
More complex measurements would include the brand value and purchase intent generated. These can apply for consumer purchase for both FMCG and highly considered purchases. For B2B, this may be less pertinent, because the number of sales is less important than the value of the sales.
Challenges using a Marketing Investment Calculator
The biggest challenge using a Marketing Investment Calculator comes when trying to apply it to the creative function. We’ve found that Creative and ROI mix as well as oil and water. Where Creative can benefit from ROI is in understanding what works and what doesn’t and then applying that information to a highly creative integrated marketing campaign.
Marketing ROI is also challenged to determine the ROI of certain functions within marketing. Many functions relate to infrastructure and can’t really be assigned an ROI. As a result, they can’t be evaluated using a Marketing Investment Calculator. These functions are the cost of doing business. Also, ROI generally tends to provide a more short-term measurement of effectiveness. In this case, it’s easy to try and save money in the short-term without realizing that it may have long-term impacts on the success of the department or the overall presence in the marketplace.
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