Comments on: How to Calculate Marketing ROI http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/ Mon, 26 Jul 2010 14:54:52 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Nigel Dean http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-16 Nigel Dean Mon, 05 Oct 2009 07:24:33 +0000 http://www.marketingroiordie.com/?p=212#comment-16 I think that a lot of the comments which talk about 'Marketing ROI' or 'Intangible ROI' need to look into the difference between financial returns and other Metrics. Marketing results should always be measured, but not always in Dollars or Pounds. ROI is always a financial calculation, but other objectives can and should be measured by choosing different Metrics (increase in website users, newsletter subscribers etc). Improving the correct Metrics will improve financial results, but don't get the two confused. I think that a lot of the comments which talk about ‘Marketing ROI’ or ‘Intangible ROI’ need to look into the difference between financial returns and other Metrics.

Marketing results should always be measured, but not always in Dollars or Pounds. ROI is always a financial calculation, but other objectives can and should be measured by choosing different Metrics (increase in website users, newsletter subscribers etc). Improving the correct Metrics will improve financial results, but don’t get the two confused.

]]> By: Ravindra http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-15 Ravindra Mon, 05 Oct 2009 05:05:46 +0000 http://www.marketingroiordie.com/?p=212#comment-15 Rebekah, wonderful post.. Its just tickled my senses to understand more in detail about the ROI. Thanks for the post ..will keep visiting your blog Ravindra Rebekah,

wonderful post.. Its just tickled my senses to understand more in detail about the ROI.

Thanks for the post ..will keep visiting your blog

Ravindra

]]> By: Rebekah http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-13 Rebekah Fri, 02 Oct 2009 20:03:10 +0000 http://www.marketingroiordie.com/?p=212#comment-13 <a href="#comment-8" rel="nofollow">@Claudio Montesion </a> Hi, Claudio. I will keep in mind that you would like to see case studies, if I come across any I can share. Best, Rebekah @Claudio Montesion

Hi, Claudio.

I will keep in mind that you would like to see case studies, if I come across any I can share.

Best,
Rebekah

]]> By: Chuck Bishof http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-12 Chuck Bishof Fri, 02 Oct 2009 17:30:06 +0000 http://www.marketingroiordie.com/?p=212#comment-12 Great summary. People ARE getting more rirorous about resolving the old saw "I know that half my marketing investment doesn't work. I just don't know which half!". Looking at ROI in agrigate helps us understand how we drive earnings for the total business. It's also to look at it at the MARGIN to help decide which programs are most beneficial. It's also important to make a good decision on your measurement horizon. A trade program can spike volume while it's running but will decay fast and even cause a trough the period after which needs to be accounted for. Advertising and consumer promotions will lift base volume while running, but have a much slower volume decay rate over 2-3 subsequent periods. If these benefits arent considered, the Advertising and Consumer investment can look significantly lower than the trade investment. Great article. Great summary. People ARE getting more rirorous about resolving the old saw “I know that half my marketing investment doesn’t work. I just don’t know which half!”. Looking at ROI in agrigate helps us understand how we drive earnings for the total business. It’s also to look at it at the MARGIN to help decide which programs are most beneficial. It’s also important to make a good decision on your measurement horizon. A trade program can spike volume while it’s running but will decay fast and even cause a trough the period after which needs to be accounted for. Advertising and consumer promotions will lift base volume while running, but have a much slower volume decay rate over 2-3 subsequent periods. If these benefits arent considered, the Advertising and Consumer investment can look significantly lower than the trade investment. Great article.

]]> By: Teresa Nurmi http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-11 Teresa Nurmi Thu, 01 Oct 2009 18:39:59 +0000 http://www.marketingroiordie.com/?p=212#comment-11 Rebekah, Thank you for this post, it has reminded me what was taught in the beginning of my business classes. I also would like a copy of your presentation as it is informative and to the point. A question I have is: when changes are made how can the marketing ROI be calculated to know if the new changes are working or if it a build up from the old? Rebekah,
Thank you for this post, it has reminded me what was taught in the beginning of my business classes. I also would like a copy of your presentation as it is informative and to the point. A question I have is: when changes are made how can the marketing ROI be calculated to know if the new changes are working or if it a build up from the old?

]]> By: Ko Ellay http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-10 Ko Ellay Thu, 01 Oct 2009 08:37:06 +0000 http://www.marketingroiordie.com/?p=212#comment-10 Hi Claudio, Like the author post here, i think we can calculate ROI from our investment on web such as PPC marketing ads, how many clicks we pay, how many clicks generate sales, how many traffic, search engine and so on. But i also find one interesting calculation and you may try here: http://www.blitzmediadesign.com/seo/web-roi.html Cheers, Hi Claudio,

Like the author post here, i think we can calculate ROI from our investment on web such as PPC marketing ads, how many clicks we pay, how many clicks generate sales, how many traffic, search engine and so on.

But i also find one interesting calculation and you may try here: http://www.blitzmediadesign.com/seo/web-roi.html

Cheers,

]]> By: Most Popular Forms of Internet Marketing are Online Customer Support : Viral Marketing http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-9 Most Popular Forms of Internet Marketing are Online Customer Support : Viral Marketing Wed, 30 Sep 2009 12:09:14 +0000 http://www.marketingroiordie.com/?p=212#comment-9 [...] How to Calculate Marketing ROI [...] [...] How to Calculate Marketing ROI [...]

]]> By: Claudio Montesion http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-8 Claudio Montesion Wed, 30 Sep 2009 08:16:32 +0000 http://www.marketingroiordie.com/?p=212#comment-8 Very interesting, but I take this opportunity to ask if someone has to submit a case study related to Web Marketing ROI. Very interesting, but I take this opportunity to ask if someone has to submit a case study related to Web Marketing ROI.

]]> By: Rebekah http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-7 Rebekah Mon, 28 Sep 2009 20:08:18 +0000 http://www.marketingroiordie.com/?p=212#comment-7 <a href="#comment-6" rel="nofollow">@Ravinder </a> Martin: It’s the intangible of awareness, brand, favorability etc. All these are intangible assets resulting from marketing and need to be included in ROI. The difficulties are in assigning appropriate values to each intangible. Ravinder: I am wondering if there is a generally accepted formula or terms for calculating intangible ROI as Martin mentioned. Hi, Ravinder. Calculating intangibles are best suited for traditional market research studies, which is what the company I work with does. You can test your target market(s) for pre- and post-awareness surrounding a marketing campaign, unaided awareness, brand perceptions, brand associations, brand loyalty/recommendation/switching likelihood, willingness to consider/pay a price premium for your brand vs. competitive brands, how well your brand's products fit into their lives, etc. As for assigning appropriate values, that would have to be done on a case-by-case basis. To some brands, awareness may be the primary goal in a campaign and therefore a lift in that area may be a "10" in importance, while to another their goal is to get across a message of "trustworthiness," so to them that may be their "10." @Ravinder

Martin: It’s the intangible of awareness, brand, favorability etc. All these are intangible assets resulting from marketing and need to be included in ROI. The difficulties are in assigning appropriate values to each intangible.

Ravinder: I am wondering if there is a generally accepted formula or terms for calculating intangible ROI as Martin mentioned.

Hi, Ravinder.

Calculating intangibles are best suited for traditional market research studies, which is what the company I work with does. You can test your target market(s) for pre- and post-awareness surrounding a marketing campaign, unaided awareness, brand perceptions, brand associations, brand loyalty/recommendation/switching likelihood, willingness to consider/pay a price premium for your brand vs. competitive brands, how well your brand’s products fit into their lives, etc.

As for assigning appropriate values, that would have to be done on a case-by-case basis. To some brands, awareness may be the primary goal in a campaign and therefore a lift in that area may be a “10″ in importance, while to another their goal is to get across a message of “trustworthiness,” so to them that may be their “10.”

]]> By: Ravinder http://www.marketingroiordie.com/2009/09/24/how-to-calculate-marketing-roi/comment-page-1/#comment-6 Ravinder Sun, 27 Sep 2009 19:07:20 +0000 http://www.marketingroiordie.com/?p=212#comment-6 Rebekah, Great writeup, very insightful. I am wondering if there is a generally accepted formula or terms for calculating intangible ROI as Martin mentioned. A great example would be market share growth, which can me measured year over year. -Ravinder Rebekah,

Great writeup, very insightful.

I am wondering if there is a generally accepted formula or terms for calculating intangible ROI as Martin mentioned. A great example would be market share growth, which can me measured year over year.

-Ravinder

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