Understanding return on investment to drive impactful marketing initiatives.
Being able to attribute a return on marketing investment (ROMI) lets organisations measure the degree to which marketing efforts, either holistically or on a campaign-basis, contribute to revenue growth.
Simply said, ROMI looks at the net profit made against the cost of investment in a project. Determining a single overall benchmark for this can be a challenge as all marketing tactics are different.
Activities, such as digital advertisement, automatically track a number of parameters, so you can quickly see how the return on your ad stands up against others that are similar. Platforms like Google Ads have collected data for years, and this extensive bank of information allows them to confidently report metrics such as 800% uplifts for PPC (Pay per click).
Less quantifiable activities, such as content marketing, can be harder to measure. Sales may not be directly attributable to a podcast, video or blog, but can be extrapolated using the incremental traffic to site and other environmental factors.
Tracking URLs/UTMs, A/B testing, and the use of designated landing pages have been a technological breakthrough for the modern-day marketer. However, the Content Marketing Institute still suggest taking the long-term view and factoring in non-financial gains, including audience growth, when it comes to ROMI.
To understand the value of an incremental piece of marketing, most businesses will start off by comparing performance against a previous, similar campaign. At iCandy Design we understand how to take this a step further, building a credible benchmark by gaining insights from existing activities, the competition and industry standards. By pulling out key digital metrics we can outline a clear set of parameters to reference against for any further activity.
Understanding ROMI is of particular interest to marketers, finance directors and business owners. Four key benefits are:
Measuring incremental financial value is difficult in a dynamic environment; it is rarely possible to compare apples with apples. There are so many variables to account for, many outside the control of the marketer or brand (such as seasonality, economic changes, improved awareness of the brand, etc). Most marketing activities also have a time lag and customer loyalty and churn need to be understood and factored in to get a true answer.
As partners to your business, iCandy Design can collate and analyse these metrics for you.
Let iCandy Design be your source of marketing advice. With years of digital and marketing experience, we have the knowledge and access to the right tools to identify a robust benchmark. We design and execute punchy marketing campaigns and will accurately measure the return on your marketing investment, giving you the confidence to let your business grow.
Call iCandy Design today to understand what we can do for you.
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