Marketing ROI
Return on investment is not the only criteria for success
Marketing
Return on investment is not the only criteria for success
High ROI (Return on Investment) doesn’t always mean good.
Low ROI (Return on Investment) doesn’t always mean bad.
Therefore, brands should look at three important things:
One, opportunity cost. Other than spending money on advertising, where else the business could have spent the money: product, trading, branding, etc.
Two, efficiency. It means how much percentage of the expenditure return. Smaller businesses have better efficiency percentages than bigger. Digital campaigns have better and more trackable efficiency percentages.
Three, net or incremental revenue. It means how much money are we dropping back to the bottom line over and above what already would have happened.
We recommend: Video; Marc Ritson on Marketing effectiveness Link