Whatsthe definition of RoI in marketing and advertising terms?
It’s very nebulous. To one marketer, RoI could be incremental sales — what do I get immediately. To another marketer, let’s say in a mature market where you may not be able to generate incremental sales, the matrix could be “are we retaining our existing customers” or “are we managing them to advocate our brand to other people”. Is RoI new to this industry? It’s always been there. But everyone is now being held accountable. So far agencies could get away by saying that they were measuring gross ratings points, or brand awareness. But those are soft matrix and have no meaning beyond what the agency or brand manager understands. The CFO could not care less about brand awareness. Soft matrix are going out of the window. Multinational companies are coming here and saying we want accountability and we want results. But how do you define those results becomes an issue. So who defines them? From the academic research point of view, at least, we know what works. There’s a way of modelling thi
