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Plus Report - By Thomas Baekdal - January 2013

ROI For Brands, The No Bullshit Way

Many people say that they can't calculate the return on investment. But you can. You can always calculate ROI on a macro level... and you can also look for ROI by looking for patterns.

As I wrote in "2013: What to Focus On", getting a grasp on ROI, or return on investment, is more important than ever for CMOs.

In 2011, a study came out saying that 70% of all CEOs had lost confidence in marketing, simply because Marketing could never quantify their results. Then in late 2012, another study came out which reported that 80% of all CEOs had lost trust in marketing. This caused people like Olivier Blanchard to speculate that we would reach 90% lack of trust in marketing in 2013... and he may be right.

Note: In comparison, 90% of the same CEOs do trust and value the opinion and work of CFOs and CIOs.

On top of this, we have the trend of abundance, which I wrote about in the same article. And we have the ongoing financial crisis, the inability of our governments to do anything other than argue, our countries' deficits dropping far beyond reasonable limits, and the extraordinarily low confidence levels by both corporate executives and consumers.

If that wasn't enough, the new world of media has an extreme focus on measured results, simply because we now have the ability to measure pretty much anything we want.

The result of all this is that the need for measured ROI should be the number one focus area for marketers in 2013. No longer can Marketing just spend their budget on whatever advertising campaigns they used to do. No longer can you just buy exposure for 500,000 views and think that means something.

In 2013, you have to prove your worth. You have to demonstrate that you are generating real sales, and that your efforts have a positive and measured impact on the company's bottom line results.

It's time to get really serious about ROI.

So in this report I'm going to give you a way to do this, in the most straightforward, no nonsense, and simple way that you can possibly imagine. In the first part of this series I wrote about ROI for nonprofits (which I encourage you to read as well), but in this report we are going to look at it for brands. Companies that have to grow and make money doing so.

First, you team up with Sales!

If you walk into most Marketing departments and you ask them how they are measuring ROI, they will look at you with a blank stare in their eyes as if you were just making up words. Marketing people often have no clue how to measure return on investment, and it's often not their fault. It's the fault of a siloed organization.

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Thomas Baekdal

Founder, media analyst, author, and publisher. Follow on Twitter

"Thomas Baekdal is one of Scandinavia's most sought-after experts in the digitization of media companies. He has made ​​himself known for his analysis of how digitization has changed the way we consume media."
Swedish business magazine, Resumé


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