The Truth About Marketing ROI

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What’s Your Marketing Return-On-Investment?

marketing roi, roi, naples marketingDo you have any idea what your business’s real gain is from your marketing?

The Truth About Marketing Value
….is if you don’t market your business your revenues could tank. Marketing success is essential.

Unless your customers are so passionate they are willing to advertise for you through solid and positive referrals, marketing is key to growing business.

Our Naples marketing firm has clients with various needs and one of our favorites, Kelly Roofing, spends very little on marketing. What Kelly Roofing does spend demands a 200% ROI (Return-On-Investment). So how do you get a 200% ROI?

Without ROI you are wasting your effort and money, so our Calculating ROI section lays it all out

Calculating ROI
2 + 2= 4
Math is simple, but marketing math can get tricky. We recommend using a simple format.

How to recognize ROI or Return-On-Investment
It’s easy to recognize advertising ROI when a business first opens, because you can count customers walking through the door.

But, for existing businesses, tracking ROI becomes a little more difficult. An innovative, exciting strategic marketing plan may make you tingle, but don’t you want to know if it’s working?

The Math
Press Releases:
$100-$250 – Calculate ROI by converting all media coverage to dollars saved (use the advertising rates of each media outlet)

Ask new customers how they heard of you and track these results. Review the results quarterly and make adjustments to advertising as necessary. Don’t advertise because you read the magazine – advertising because the readers are YOUR TARGET AUDIENCE!

Easy Marketing Changes to Improve ROI
advertising roi, marketing roi, roi, naples marketing firmSometimes it’s not about dollars. It’s about increased awareness. ROI can be focused on sales or long-term brand building, but math is a necessary evil.

From the book What Sticks by Rex Briggs and Greg Stuart on Dove soap improving its advertising ROI:

“Our research showed that there was a significant opportunity to boost results without spending a single dollar more. For Dove Nutrium Bar (a premium bar soap product), a 14 percent gain in consumer purchase intent [which has a strong correlation to sales] could be achieved simply through rebalancing the advertising mix among television, magazine, and online advertising.”

What Sticks, page 27

McDonald’s some years ago noticed its television advertising wasn’t working and in looking at its national advertising run, researchers realized ads were running at times people were least hungry. They moved the ads and sales improved 30%! Whether a Naples marketing focus or a big city, results are possible.

Create and buy advertising using your consumer’s eye not your own. Patting yourself on the back does not motivate consumers. Our Naples marketing firm says cut through all the bologna and be real.

Capture attention with truth, honesty and a clever strategy…you only have ONE CHANCE. Strategic marketing still needs a return, period.

Embrace knowing your successes and failures so you can boost business!

Leave your comments and questions below. Are you calculating ROI? Tell us how.

About Camden Smith

Camden Smith has written 77 posts for Marketing Magnetics.

Camden Smith owns DREAMFly Marketing with 16 years in strategic marketing and television journalism. Her cutting-edge, aggressive marketing skills have earned her numerous awards. Smith lives in Naples, Florida with her daughter London.

  • Marla Stanley

    I agree that measuring your return on investment is important. I had a marketing firm tell me branding just takes time and there were limited ways to measure it – clever ways to measure in this blog. Thanks!

    • Monica Hernandez

      I’ve never understood why companies spend and don’t track what they get back.

  • Tate S.

    I always love when people say oh I’ll just go into business for myself and do my own thing…well fyi it’s a lot of work – great way to hammer how we can use our marketing more creatively and stretch our marketing dollars!

    • Camden Smith

      Make sure you measure the return you receive on every marketing tactic whether it’s networking or it’s advertising dollars – know what you’re getting back.

    • Monica Hernandez

      lol funny Tate

  • Eric Tanner

    I had never thought that consumer desire to buy was directly related to sales. The Dove Nutrium soap example really opened my eyes.

  • Marla Stanley

    I forgot to share with you when I read this – came back for your anniversary blog and was browsing around….we measure ROI by calculating the cost of the advertising versus the sales it brings it in and measuring the cost of a press release with just the cost it would have cost in media coverage that we receive – like you suggested. Difficult but worth it.

    • Camden Smith

      Also keep in mind that PR aka: publicity is worth 20 times it’s weight so you pay $150 for a press release let’s say and you receive a 3 column by 5 inch high article in your local newspaper – that size article in black/white converted to say $650 in advertising savings but when you calculate the frequency and reach of the audience that press release and published article really are about a $12,000 savings in exposure.
       - Camden Smith, DREAMFly Marketing