The Truth About Marketing ROIPosted by Camden Smith on Aug 12, 2011 in Advertising, Blog, Timely Business News
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What’s Your Marketing Return-On-Investment?
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
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?
$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!
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.