In grappling with marketing budgets and how many resources
to allocate to various competing marketing channels, from established media to
emerging platforms, the conundrum arises: What metrics most effectively measure
ROI on marketing budgets?
The article above offers a frustratingly opaque description
of “a straightforward decision support tool for precisely that
purpose. Geared to brand managers, not postdoctoral researchers, the tool used
simple response curves that allowed the marketer to simulate different
scenarios of marketing spending. The tool was embedded in an easily used
PowerPoint slide and proved invaluable for settling on marketing approaches
that hit the sweet spot for a number of variables, from cost to effectiveness
to risk.” While I would love see this tool in action, the article later
discusses more straightforward metrics used by C-suite executives at one firm
to measure marketing ROI more concretely. These metrics measured the impact of
advertising on consumer recall, on consumer’s perceptions of the business, and
on sales leads and revenue. Although these may be rather blunt instruments,
they are readily understandable and well-established ways to measure impact,
albeit rather old school when juxtaposed with the latest tools in the digital
marketer’s arsenal.
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