Return on investment on marketing spend

White paper on marketing and media spend per capita

When marketers measure return on investment, they use these criteria to evaluate the performance of marketing and media agencies:

1/Creative artwork

2/Strategic direction

3/Quality of work

4/Performance of campaigns

5/Effective tactics

6/Results

7/Value

8/Budget constraints

9/Personal issues.

In the pre-digital era, an advertiser used to switch from one agency to another if the top 3 targets weren’t met. In fact, most advertisers used to change vendors every 6 to 12 months because the return-on-investment often turned out to be negligible.

Marketers who were only skilled at Trade Marketing were a second contributing factor to low ROIs. Trade Marketing relates to increasing the demand at wholesaler, retailer, or distributor level rather than at the consumer level. Consumer marketing strategies were oftentimes dictated by, and imported from corporate head offices in markets of origin.

Advertisers who didn’t set clear strategic directions and communicate specific goals to guide the works of marketing agencies in order to produce the right programs that hit the right marks also caused ROIs to plummet.

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